Page:Federal Reporter, 1st Series, Volume 3.djvu/503

 496 FEDERAL REPORTER. �fraudaient daim, within the meaning of the statute, anfl, îf he knew it to be false and fraudaient, that completed th» offence. �The demurrex will, therefore, be overruled. ���In THE Mattkb ot Hoolb, Bankrupt. {^District Court, 8. D. Nm Tm-k. July 24, 1880.) �1. TJsTJBY— Equitable Adjustmknt. — Whenever the parties to an nsurlou» �luctu are obliged to resort to a court of equity for relief for the fore- closure of securities, or for their redemption, they are forced to sub- mit to an equitable adjustment of the debt, which is held to be th» payment of the loan, with lawful interest. AU payments of interest in excess of this are held to be under duress, and not voluntary pay- ments of interest, and are applied in liquidation of the principal. �Tiffany v. Boatman's Institution, 18 Wall. 375, 385. �Wheeloek v. Lee, 64 N. Y. 242, 245. �Beach v. Fuîton Bank, 3 Wend. 573, 585. �2. Same—Samb— Assignee m Bankkuptot. — An assignee In bankruptcy �cannot give up the benefit of these equitable principles in the adjust- ment of an unpaid usurious loan. �8. Same — Same — 8ame. — Quœre, whether an assignee in bankruptcy \» bound to set up usury as a defence to a claira made against the esta te for the purpose of avoiding what is, in other respects, a valid and meritorious claim. Beaoh v. Fulton, 3 Wend. 573. �4. Obdbb of Couet — Misrepresbntatioiî. — A bankruptcy court has �power to vacate an order authorizing the surrender of certain life insur- ance policies to a creditor, to whom they had been pledged, upon th» release of the debt which they had been given to secure, where such order was procured by a material misrepresentation of the facts, although the misrepresentations were not neceasarily fraudulent, ■where the court would not have originally made such order if the real facts had been known. �5. Bankkuptcy— CoMPiîOMisE— Geiîbkai, Ordbb 20.— Under General Or- �der 20, a bankruptcy court cannot authorize a compromise except upon testimony, and upon a petition " clearly and diatinctly " setting forth " the subject-matter of the controversy, and the reasons why the assignee thinks it proper, and most for the interest of thccred- itors, that it shouldbe settled." ����