New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-11-22

thereby II became her property, With liberty II sne
ohose instead on snrrendering IL and recovering us
surrender yalne 10 keep slivo by paying premiums
and receive to herself fruits that the rght OF inc
assignee I'm the policy ceased s being so Vaiueu anu
could not be yved by the fact that she chose 10 cou
time 10 pay premiums when IL never could nave Dcon
revived II she had chosen 10 surrender IL ana receive
the sIS that the policy would have been worthless
at the death bankrupt had she not paid tho pre-
minus that she took the 1isk and In entitled 10 the
proatlof the Investments and that the question or me
value OF the policy against tho assignee is rss do'
dieafd and cannot be opened.
II was urged by Charles NJ Earle. counsel for the
assignee that the equity Of the Is with him. that II
the creditor shall receive the Co., and shall retain
the $3.50 and the s6 c. and shall receive further div
bends from the estate Lucy Van Antwerp will be more
than paid debt In full while tho other creditors will
not that therefore, by recovering the amount OF her
policy she Is paid than her debt and ceases 10 be
creditor; and that consequently the assignee should
be declared be entitled to interest in the policy as
OF the estate TO the extent OF the surplus re
naming after paying the debts aud no urher clVldehu
| should be paid on the debt
In support OF those views, and in answer to those
maintained by the creditors, 1t insisted that The
former decision only direction, made under cir
cumsances then existing to guide the assignee In re-
spect 10 q dividend and that Lucy Van Antwerp took
nothing but the right TO keep the policy ave and 10 be
paid full OF its proceeds. coupled with the obg-
ton pay the assignee the surplus proceeds over tho
amount OF her debt. In the decision Judge Batch
ford says:
am Of the opinion that the position taken bv the
creditor not sound The Court, In fixing the S3 IL rs
the value of tine policy reference TO It's value
it stood security created and upheld by
the payment OF the baukrupts money and one 10 wnich
he had given all tho value IL then had The deermina-
ton OF the relations between the and the creditor
proceeds the further basis that the policy was TO be
surrendered and Since that the creditor
has kept the policy alive but she has done 80 for the
security of the debt IL was only Us creditor that she
had such interest in the life Of the bankrupt as to
make possible for her TO have an nsnuable interest
under the policy The policy was taken out as snch
security, and it has been continued such security.
1t not however now, and was no: when the bankrupt
died. the security which the Court fixed the value
OF and applied on the debt at sJl H. 1hat value was
merely the then value OF the investment of the bank
rupCs money. The policy now IS suDstahtlauy new
security Ii stands as II Lucy Van Antwerp had never
bad security under the policy until she began paying
another creditor Of the bankrupts had after MS bank
ruptcy and before any dividend made, taken out
rupt had died before any dividend was mace wOulI
it not have been necessary aud proper to charge
such creditor with the J net G%SgPt b rsa s%S
stlntially taken ont new policy since the bank
TO credit the debt what che realizes on the policy,
beside crednS all other payments on the debt, ana
Section q OF the Bankruptcy aet PROVIDES mat q
proof of debt must set forth whether any and what sec
rifles held for the debt, and must state tDat the
claimant has not nor has any other person for his use
received any security whatever other than that set
"a provide Tor the reexainlnati0n OF all claims aud
proofs OF debt at any time. This policy was Ia tie
hands OF Lucy Van Antwerp. ~ much seculty Tor the
debt after instead of surrendering IT, she went keep
ing IL alive, it was before.
tile credit of the sl3 ~ was based on the surrender
OF The policy, that sum ought not 70 be credited me
policy not having been surrendered The debt should
De charged at its proper original amount with proper
interest Then their should DO credited on IL the $500
ana the SGu ca with proper interest The amount
OF the policy, so far as necessary, should be APP
piled cxtinguis the balance due the debt, Lucy
Van Antwerp having credit for and being refunded with
interest the paid her for premiums AT the
petition was filed, either through the bankrupt or
directly. ont OF the balance, any, then LETT OF The
policy money, the assignee must be- refunded the 1850
wh nteres 1t IS referred TO the Register to state and
account thJs basis