Mechanics Universal Joint Co. v. Culhane

Mr. Justice Brandéis

delivered the opinion of the Court..Section 5242 of the Revised Statutes of the United States, 12 U. S. C. § 91 provides that payments made by a national bank “in contemplation” of the commission of an act of insolvency, “with a view to the preference of one creditor to another” “shall be utterly null and void.”

This suit was brought in the federal court 2 for northern Illinois by the receiver of the Manufacturers National Bank and Trust Company of Rockford, in that State, to recover, as such preference, the proceeds of a check for $42,761.12 drawn on the bank by the…