INSOLVENTS. 1Y35

An. Code, sec. 11. 1904, sec. 11. 1888, sec. 11. 1854, ch. 193, sec. 10.

11. The estates of the insolvent shall be distributed under the order
of the court, according to the principles of equity; and no creditor shall ac-
quire a lien by fieri facias or attachment, unless the same be levied before
the filing of his petition.

Distribution.

Distribution must be made by the trustee in insolvency court, and that court
must pass upon all claims and liens. The insolvency court cannot by its order
divest itself of jurisdiction. Cross v. Hecker, 75 Md. 576; Manahan v. Sammon,
3 Md. 475. See also Wiles v. Wiles, 3 Md. 10; Pierson v. Trail, 1 Md. 142; Carter v.
Dennison, 7 Gill, 170; Buschmann v. Hanna, 72 Md. 4 (explaining Thomas v.
Brown, 67 Md. 512).

Equity will not assume jurisdiction over the distribution of the estate of an in-
solvent. Pierson v. Trail, 1 Md. 142; Powles v. Dilley, 9 Gill, 240.

The rule of distribution is the same as that regulating a court of equity. Clark
Co. v. Colton, 91 Md. 217; Fox v. Merfeld, 81 Md. 82; Third Natl. Bank v. Lana-
han, 66 Md. 469; McCulloh v. Dashiell, 1 H. & G. 97.

Where a creditor attaches before the filing of petition in insolvency, the prop-
erty vests in the trustee subject to the inchoate lien of attaching creditor. Willison
v. Frostburg Bank, 80 Md. 211; Buschmann v. Hanna, 72 Md. 4 (explaining Thomas
v. Brown, 67 Md. 512); Dowler v. Cushwa, 27 Md. 365; Manahan v. Sammon, 3
Md. 473; Selby v. Magruder, 6 H. & J. 459.

In order to put this section into operation, an injunction will be granted re-
straining further proceedings upon judgments or attachments. The rights and
priorities of all creditors will be preserved in the distribution. Lynch v. Roberts,
57 Md. 153.

Where before the commencement of a building the owner confesses judgment in
favor of A. to secure certain advances which A. makes after the commencement
of building, such judgment has priority in distribution of insolvent's estate over a
mechanic's lien claim against building. Robinson v. Consol. Real Estate Co., 55
Md. 106.

Where a part owner surrenders to another part owner all her interest in certain
real estate in consideration, of a sum which is not paid, there being no actual con-
veyance, and the latter becomes an insolvent, the former is entitled to a vendor's
lien against that portion of the real estate which she thus sold her co-owner.
Thomas v. Farmers' Bank, 32 Md. 70.

An equitable lien cannot be enforced by the mortgagee in an action of trover
against him brought by insolvent trustee of mortgagor. The mortgagee's rights
must be asserted in the insolvent court. Crocker v. Hopps, 78 Md. 265.

Where a creditor is compelled to file his claim, and another creditor excepts to
it on the ground of usury, the court will allow the principal of the former's claim
with legal interest. Carter v. Dennison, 7 Gill, 173.

Where A. sells land to B., the latter making a small cash payment and the
former taking notes for balance and reserving legal title, C., a party to whom A.
has indorsed and guaranteed the notes, has a priority in distribution of insolvent's
estate, trustee having sold land and A. being compellable to convey legal title ac-
cordingly. Willis v. Wright, 22 Md. 379.

If a claim is valid at the time it is filed in an insolvent estate, it will not be
barred by limitations thereafter. Numerous audits in an insolvent estate, con-
demned. Hignutt v. Garey, 62 Md. 192.

Custodia legis.

The insolvent's property being vested in the trustee, is no longer within the
reach of process. Insolvent Estate of Leiman, 32 Md. 240.

Upon an application for benefit of our insolvent laws, a debtor's property passes
in custodia legis, and is not thereafter liable to distraint. This is true though rent
be due at the time petition is filed. The same principle is applicable to proceed-
ings in bankruptcy when administered in Maryland. Fox v. Merfeld, 81 Md. 82;
Buckey v. Snouffer, 10 Md. 155; in re. Southern Company, 180 Fed. 838.

The " custodia legis" commences with filing of petition. All bona fide liens for
a valuable consideration antecedently attached must be respected. Assignees in in-
solvency are not bona fide purchasers for value, but take, property subject to all