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The Annotated Code of the Public General Laws of Maryland, 1924
Volume 375, Page 1736   View pdf image (33K)
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1736 ARTICLE 47.

burdens it was under in hands of assignor. Set-off as applicable to insolvency
cases. Dowler v. Cushwa, 27 Md. 365. As to set-off, see also Colton v. Drovers'
Bldg. Assn., 90 Md. 95.

Property in hands of an insolvent trustee is not liable to attachment by non-
resident creditor. Pinckney v. Lanahan, 62 Md. 451 (overruling earlier cases to
contrary; see note to Larrabee v. Talbott, 5 Gill, 426); Torrens v. Hammond
10 Fed. 900.

Trustee's power of sale.

The insolvent trustee sells all insolvent's property (save as mentioned in sec. 25)
free and discharged from liens, reserving the settlement of all priorities until final
distribution. Eschbach v. Pitts, 6 Md. 75; Manahan v. Sammon, 3 Md. 473; Glenn
v. Gill, 2 Md. 18.

The creditor's acquiring a lien in accordance with this section does not divert
the trustee of his right to sell, which extends to all of the insolvent's property.
Alexander v. Ghiselin, 5 Gill, 179.

This section makes it evident that where there is specific property, it must be
sold. Zeigler v. King, 9 Md. 334.

Generally.

This section does not clothe insolvent court with powers and jurisdiction of a
court of chancery; it is acting under special statutory powers. Gable v. Scott, 56
Md. 185. And see Bowie v. Jones, 1 Gill, 208; Paul v. Locust Point Co., 70 Md. 292.

The provisions of this section apply equally to voluntary and involuntary in-
solvency. A creditor who files his claim for a distributive share of an insolvent
estate, will not be allowed to impeach the adjudication. Gottschalk v. Smith, 74
Md. 562.

Where A. issues an attachment against B. and the latter thereafter goes into in-
solvency, and C. still later gets a judgment against B. and issues an attachment
thereon laying it in the hands of the insolvent trustee to affect the fund arising
from a sale of the property attached by A., C. may intervene and move to quash
A.'s attachment. Clarke v. Meixsell, 29 Md. 228.

Where there are three judgment debtors and one of them dies and the other
two go into insolvency, and the judgment debt being filed against the insolvent
estate of one of the latter, is paid by the trustee, the latter is entitled to two-
third's of the amount paid by him out of the proceeds of the sale of the real estate
of the deceased judgment debtor, the evidence establishing the relation of prin-
cipal and surety between his insolvent and the other judgment debtors. Walsh v.
Boyle, 30 Md. 267.

This section relates only to cases of insolvency. Triebert v. Burgess, 11 Md. 462.

The attachment may be on mesne process, as well as on judgment. Thomas v.
Brown, 67 Md. 515.

The insolvent trustee could not recover from the guarantors of debts of the in-
solvent. Colton v. Mayer, 90 Md. 716.

Cited but not construed in Insolvent Estate of Leiman, 32 Md. 241; State v.
Mayugh, 13 Md. 377.

The landlord's lien on crops reserved as rent is not divested by the tenant's in-
solvency—art. 53, sec. 23.

As to the insolvency of agents and factors as bearing upon consigned goods and
money due therefor, see art. 2, sec. 7, et seq.

An. Code, sec. 12. 1904, sec. 12. 1888, sec. 12. 1854, ch. 193, sec. 11.

12. The said courts, or the judge thereof in the recess, may remove
any trustee for misconduct, or may, at discretion, discharge a trustee who
applies to be discharged.

Where a trustee's interests are conflicting, he should ask to be relieved. Hoffman
v. Armstrong, 90 Md. 132.
See sec. 13 and notes.

An. Code, sec. 13. 1904, sec. 13. 1888, sec. 13. 1854, ch. 193, sec. 12. 1880, ch. 172. '

13. The said courts, or judges thereof, shall prescribe the penalty of
the bonds of the trustees and approve the security therein, and may order

 

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The Annotated Code of the Public General Laws of Maryland, 1924
Volume 375, Page 1736   View pdf image (33K)
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