Page:Federal Reporter, 1st Series, Volume 3.djvu/829

 822, FESEBAIi BKPOBTEB. �that heavy loss bas been incurred by the bank în conse- quencie of such omissions. It charges that Armstead, the cashier, is in default to the bank in the sum of |9,162, and that other losses have ocourred to the bank in consequence of certain of bis acts ; that he is utterly insolvent, and that the directors are responsible for the default and the losses referred to. Such, in condensed form, are the allegations of the bill, which the demurrer of the defendants admits to be true for the purpose of pleading. I am to assume that they are true, iu considering the questions raised by the demurrer. �In what will be said further on in this opinion ail the sev- eral objections of the demurrer, exoept that mentioned in the third specification, will be either virtually or expressly con- sidered. It is objected in this third specification that the causes of action set out in the bill did not accrue within two years before the institution of this suit. This objection is not well taken. It is not necessary that a cause of action should originally accrue or arise within two years before suit is brought by an assignee in bankruptcy. It is only necessary that it shall exist at the filing of the petition in bankruptcy ; and that suit upon it shall be brought by the assignee within two yeiars after his appointment to office. It is settled law (In re Eldridge e Co. 2 Hughes, 256) that "the effect in bankruptcy of the petition, the adjudication, and the assign- ment is to vest the assets in the assignee as a trust, against which the statute of limitations ceases to run" from the date of the petition. Assuming that the right of action existed, as in this case, at the date of the petition in bankruptcy, then the assignee in bankruptcy (the trustees here) has a right to sue within two years "from the time when the cause of action accrued for or against such assignee," that time being the date of the appointment and qualification of the assignee. The third specification of the demurrer must, therefore, be overrUled, for thia bill was filed on the first of April, 1 876, and the court will take judicial notice of the fact that the trustees were appointed more than ten days after the twenty- eighth day of March, 1874, the day of adjudication. �Without alluding further at present to the other specifica- ����