2026 ARTICLE 47

For conveyances held to be bona fide, and hence within proviso contained in last
clause of this section, see Nicholson v. Schmucker, 81 Md. 464; Hinkleman v. Fey, 79
Md. 114.

Generally.

Where a conveyance or payment is void, the title to the property vests in the in-
solvent 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 pro-
ceedings are voluntary, the trustee must proceed in other forums to have transfers,
assignment, etc., set aside. This was connection in which language quoted in Paul v.
Locust Point Co., 70 Md. 292, from Purviance v. Glenn, 8 Md. 206, was used. Vogler
v. Rosenthal, 85 Md. 46.

A conveyance made void by this section may be so declared and treated by in-
solvent court, although such conveyance was made to a non-resident and grantee
was not summoned and did not participate in insolvency proceedings. The adjudica-
tion based upon conveyance of necessity involves the determination that 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, note to secure which 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. Pat-
tison, 84 Md. 345.

For a 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 secs. 8 and 24 and notes.

As to conveyances from husband to wife, see art. 45, secs. 1 and 2.

Where chattel mortgage is given in part to secure a loan made at the time and in
part to secure previous indebtedness, mortgage held valid as to sum loaned but in-
valid as a preference when insolvency proceedings instituted within four months after
giving mortgage. Industrial Service v. Rogers, 163 Md. 656.

Cited but not construed in separate opinion in Hammond v. Lyon Realty Co.,
163 Md. 455.

Cited but not construed in Coffman v. Publishing Co., 167 Md. 288.

An. Code, 1924, sec. 15. 1912, sec. 15. 1904, sec. 15. 1888, sec. 15. 1888, ch. 383.

1896, ch. 184. 1935, ch. 467.

15. Whenever any person or body corporate shall make an assignment
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 credi-
tors, 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 corporate, all the money due and
owing from such person or body corporate for wages, salaries or commis-
sions to clerks, servants, salesmen or employees contracted 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, ex-
penses, 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, adjudica-
tion or decree.

Under evidence in case, held that officers and superior officers of corporation not
entitled to preferential payments of claims for pre-receivership salaries. Pyrites Co. v.
Silica Gel Corp., 8 F. Supp. 423.

This section referred to in determining priority of labor claimants under local act
where employer is in bankruptcy. In re Rogers, etc., Co., 22 F. (2d), (Dist. Ct. Md.),
573.

Priority may be given claims for wages earned three months prior to receivership
proceedings resulting in bankruptcy. In re Reliable Furniture Mfg. Co., 32 Fed. (2nd),
805; Manly v. Hood, 37 Fed. (2nd), 214.