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ART. 47] WAGES, PREFERRED CLAIMS. 1219
Generally.
Where a conveyance or payment is void, the title to the property vests in
the insolvent trustee. Prayers correctly setting forth the facts requisite to
bring a case under this section. Willison v. Frostburg Bank, 80 Md. 210.
Where a debtor has been adjudged Insolvent on other grounds, or where
the proceedings are voluntary, the trustee must proceed in other forums to
have transfers, assignment, etc., set aside. This was the connection in which
the language quoted in Paul v. Locust Point Co., 70 Md. 292, from Purviance
v. Glenn. 8 Md. 200, was used. Vogler v. Rosenthal, 85 Md. 46.
A conveyance made void by this section may be so declared and treated
by the insolvent court, although such conveyance was made to a non-resi-
dent and the grantee was not summoned and did not participate in the insol-
vency proceedings. The adjudication based upon the conveyance of neces-
sity involves the determination that the conveyance is void. Brown v.
Smart, 69 Md. 329 (affirmed in 145 U. S. 457); Vogler v. Rosenthal, 85
Md. 45.
While a mortgage may be void as a preference, the note to secure which
the mortgage was given, may be valid. Frederick etc., Co. v. Michael, 81
Md. 487.
What a bill to set aside deeds as in fraud of our insolvent system must
allege. Faringer v. Ramsay, 4 Md. Ch. 38.
For cases where purchasers were held not to have acted bona fide, see
Smith v. Pattison, 84 Md. 345.
For a full note upon fraudulent conveyances, see Swan v. Dent, 2 Md.
Ch. 111.
For cases apparently now inapplicable to this section because of changes
in the law, see Whedbee v. Stewart, 40 Md. 421; Mackintosh v. Corner, 33
Md. 605; Zeigler v. King, 9 Md. 330.
Cited but not construed in Third Natl. Bank v. Lanahan, 66 Md. 469.
See sections 8 and 22 and notes.
As to conveyances from husband to wife, see art. 45, sections 1 and 2.
1904, art. 47, sec. 15. 1888, art. 47, sec. 15. 1888, ch. 383. 1896, ch. 184.
15. Whenever any person or body corporate shall make an assign-
ment for the benefit of his, her or its creditors, or shall be adjudicated
insolvent upon his, her or its petition, or upon the petition of any
creditor or creditors, or shall have his, her or its property or estate
taken possession of by a receiver under a decree of a court of equity, in
the distribution of the property or estate of such person or body cor-
porate, all the money due and owing from such person or body corporate
for wages or salaries to clerks, servants, salesmen or employes con-
tracted not more than three months anterior to the execution of such
assignment, adjudication of insolvency, or appointment of receiver,
shall first be paid in full out of such property or estate, after payment
of the proper and legitimate costs, expenses, taxes and commissions,
and shall be preferred' to all claims against the property and estate of
such insolvent person or body corporate, except the lien claims of such
persons as shall hold liens upon such property or estate, recorded at
least three months prior to such assignment, adjudication or decree.
The wages must be due within three months from the adjudication, and
not from the filing of the petition. Where an assignment for the benefit of
creditors is subsequently set aside by insolvency proceedings, the wages
preferred are those contracted within three mouths from the adjudication.
Roberts v. Edie, 85 Md. 183.
This section was designed to create a preference in behalf of certain cred-
itors, and to that extent destroys that equality which is the policy of the
insolvent system. This section held to give a priority over a claim for rent,
and also over a judgment. Hess v. Jewell, 85 Md. 238.
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