Page:United States Statutes at Large Volume 76A.djvu/368

–272– -272§ 4933. Validity of debtor's contracts In the absence of fraud, every contract of a debtor is valid against all his creditors, existing or subsequent, who have not acquired a lien on the property affected by the contract. § 4934. Payments in preference A debtor may pay one creditor in preference to another, or may give to one creditor security for the payment of his demand in preference to another. § 4935. Relative rights of different creditors; marshaling assets Where a creditor is entitled to resort to each of several funds for the satisfaction of his claim, and another person has an interest in, or is entitled as a creditor to resort to some, but not all of them, the latter may require the former to seek satisfaction from those funds to which the latter has no such claim, so far as it can be done without impairing the right of the former to complete satisfaction, and without doing injustice to third persons. Subchapter II—Fraudulent Instruments and Transfers § 4951. Transfers, etc., with intent to defraud creditors Every transfer of property or charge thereon made, every obligation incurred, and every judicial proceeding taken, with intent to delay or defraud any creditor or other person of his demands, is void against all creditors of the debtor, and their successors in interest, and against any person upon whom the estate of the debtor devolves in trust for the benetit of others than the debtor. § 4952. Transfers and liens without delivery presumed fraudulent (a) Except as provided in subsection (b) of this section, every transfer of personal property and every lien on personal property, made by a person having at the time the possession or control of the property, and not accompanied by an immediate delivery followed by an actual and continued change of possession of the things transferred, is conclusively presumed fraudulent and void as against: (1) persons who are creditors of the transferor while he remains in possession, and the successors in interest of such creditors; (2) persons on whom the transferor's estate devolves in trust for the benefit of others than the transferor; and (3) purchasers or encumbrancers in good faith subsequent to the transfer. (b) This section does not apply to: (1) things in action; (2) ships or cargoes at sea or in a foreign port; (3) mortgages allowed by law, or contracts of bottomry or respondentia; (4) a sale, transfer, assignment, or mortgage made under the direction or order of a court of competent jurisdiction, or by an executor, administrator, guardian, receiver, or other officer or person acting in the regular and proper discharge of official duty or in the discharge of any trust imposed upon him by law; (5) a transfer or assignment, statutory or otherwise, made for the benefit of creditors generally; or (6) a sale, transfer, assignment, or mortgage of any property exempt from execution.

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