1742 ARTICLE 47.

twenty days to pay any depositor on demand lawfully made, shall be
deemed to have committed an act or acts of insolvency, as the case may be;
provided, the petition mentioned in the next succeeding section is filed
within four months after the act of insolvency is committed.

Acts of insolvency.

Fact that grantee or party to whom money is paid has no knowledge that grantor
is insolvent, does not take case out of operation of this section. Prayers correctly
setting forth facts requisite to bring a case under this section. Where a firm, being
insolvent, sells its stock of goods and immediately returns to purchaser a part of
purchase price, to be applied to the payment of notes on which the purchaser is
endorser, a preference is created. Where a merchant commits acts of insolvency,
a subsequent assignment for benefit of creditors has no effect against insolvent
trustee. Willison v. Frostburg Bank, 80 Md. 212. (Sec. 34 not applicable.)

Fact that defendant honestly believes he will be able to go on with the business,
and makes preferences without any design so to dp, is immaterial. As soon as
debtor commits any of acts enumerated in this section, it becomes absolute right
of creditor to place debtor in insolvency. Though there be an erroneous instruction
on one act of insolvency, if debtor is guilty of another act, the judgment will not
be reversed. Castelberg v. Wheeler, 68 Md. 279.

If conveyances are in other respects valid and there are no proceedings in insol-
vency within the prescribed time, conveyances are good. The term " insolvency "
means an inability to pay debts as they become due in ordinary course of business.
Intention of this section. When a party subjects himself to its provisions. Castel-
. berg v. Wheeler, 68 Md. 275.

Whatever is the necessary consequence of an act deliberately done, the law pre-
sumes every man to intend. When the quo animo becomes an inference of law.
Gardner v. Lewis, 7 Gill, 404.

For a case involving the suspension of payment of negotiable paper as an act
of insolvency, see Cator v. Martin, 57 Md. 400.

For conveyances, etc., held fraudulent and void, see Clark Co. v. Colton, 91
Md. 207; Brown v. Smart, 69 Md. 329 (affirmed in 145 U. S. 454); Cator v. Martin,
57 Md. 400.

Generally.

The enactment of a bankruptcy law suspends a state insolvency law only so far
as the two conflict. The latter continues in force as to any class of persons exempted
by former. It is the exercise of the power of establishing a bankrupt law, and not
the existence of such power, which renders the state law inoperative. It is the
policy of this section to make farmers subject to its provisions. Old Town Bank v.
McCormick, 96 Md. 349.

Proceedings against a corporation to avoid a preference may be brought under
this section or under art. 23, secs. 376 and 377, of the Code of 1904—see secs. 92 and
94 of this Code (art. 23). Mowen v. Nitsch, 103 Md. 687. And see Hughes v. Hall,
118 Md. 680.

Where a transfer has been made the basis of an adjudication, it is ipso facto
void and sec. 24 is not applicable. Vogler v. Rosenthal, 85 Md. 46.

Object of this section as to bankers, brokers, merchants, traders, etc. The retire-
ment of such person from business or his having made a deed for benefit of credi-
tors, does not absolve him from provisions of this section. Gardner v. Gambrill,
86 Md. 660.

For a note upon fraudulent conveyances, see Swan v. Dent, 2 Md. Ch. 111.

See secs. 8 and 14 and notes.

An. Code, sec. 23. 1904, sec. 23. 1888, sec. 23. 1880, ch. 172, sec. 24. 1886, ch. 298, sec. 24.

23. A petition may be filed in any of said courts having right to take
jurisdiction of tKe debtor so committing any act of insolvency in the pre-
ceding section mentioned, by any one or more creditors, the aggregate of
whose debts against insolvent amounts to at least the sum of two hundred
and fifty dollars, at any time within four months after the recording of any
of the conveyances, creation of liens, or committing of any of the acts of in-