In re Busby

ARCHBALD, District Judge.

At the time a debt is created the creditor has the right to dictate the terms on which he will part with his money or property, and may therefore demand that he shall first be secured to such an extent as satisfies him. With this the bankruptcy law does not undertake to interfere, the creditor being allowed to retain without question whatever advantage he has acquired thereby. Bankr. Act, § 57, cls. e, h (Act July 1, 1898, c. 541, 30 Stat. 560 [U. S. Comp. St. 1901, p. 3443]). But, when a debt is once contracted, payment on account, or the transfer of property for the…