174 HIGH COURT OF CHANCERY.

of the complainant, as solicitor of one of his creditors, to dis-
pense with special bail in an action against him. The defend-
ant also denied, that the assignment was fraudulent and void,
within the meaning of the insolvent laws; and stated, that im-
mediately after the execution thereof, he had called upon the
creditors of the insolvent to inform them of it, and that they
had assented thereto, and directed him to proceed in the execu-
tion of the trust reposed in him by it. A replication was put in
to this answer, and certain papers and an agreement were filed
to show the assignment to Hall, the application of Keene, for
the benefit of the insolvent laws, and the appointment of the
trustee.

The case was subsequently removed to this court, and
argued before the Chancellor, who, at this term delivered the
following opinion:]

THE CHANCELLOR:

It has been settled by the highest authority in this state, that
a debtor in failing circumstances may prefer one creditor to an-
other, by a transfer of his property, made in good faith; and
that in similar circumstances, a transfer by a debtor of his
whole estate to trustees, for the equal benefit of his creditors, is
free from objection. State of Maryland vs. Bank of Maryland,
6 G. & J, 205.

Although, however, a debtor may prefer one of his creditors,
to the exclusion of the rest, either by payment, or a bonafide
transfer of his property, according to the provisions of the com-
mon law, yet, in this state, if such payment or transfer, is
made with a view, or under an expectation of being or becom-
ing an insolvent debtor—which words are construed to mean,
with a view or under an expectation of taking the benefit of
the insolvent law—and with an intent thereby to give an undue
and improper preference to such creditor, then such payment
and transfer are obnoxious to the provisions of our insolvent
system, and void, the acts of 1812, ch. 77, sec. 1, and 1816,
ch. 221, sec. 6, (this latter act relating to the city and county
of Baltimore,) declaring such to be the law of this state. The