83 Iowa 553 | Iowa | 1891
It is provided by section 2115 of the Code: “No-general assignment of property by an insolvent, or in contemplation of insolvency, for the benefit of creditors, shall be valid, unless it be made for the benefit of all his creditors in proportion to the amount of their respective claims.” It is conceded that the partnership was insolvent, and that the assignment in question was-contemplated by the members of the firm for several days before it was made. An attorney was consulted, who commenced writing up an assignment on the twenty-fourth day of September, 1888. On the morning of the next day the defendant Beach consented to-act as assignee, and the instrument was completed on that day. Now, if, as part of the same transaction, and for the purpose of giving a preference to Healy, the partnership executed the mortgage to Healy, the assignment and mortgage would both be void, as being-within the provision of the statute above cited. This question has so frequently been determined by this-court that a reference to the cases is unnecessary.
The rights of the parties to these cases depend somewhat on other facts necessary to be considered in connection with the time of the execution of the mortgage and assignment. In the first place, when the members of the partnership determined to make an assignment they had no intention to prefer any creditor. When the instrument was written and the-
Finding, as we do, that the attachment was levied before the assignment was completed, and that it was ■competent for the parties to substitute the mortgage