Virginian-pilot. (Norfolk, Va.) 1898-1911, 1899-06-25

d..
April IL, 1889.
THE SCHEDULE OF PREFERRED
JEBTS, WHICH UNDER THE LAW
MUST BE FILED WITH EVERY
ASSIGNMENT FOR THE BENEFIT
OF CREDITORS, MUST STATE
THE DATE AND CONSIDERATION
OF EACH DEBT, WHETHER 1T BE
ON ACCOUNT OR FOR NOTES.
WHEN THE DEBT IS A LONG AC-
COUNT THE DATE OF THE FIRST
AND LAST ITEMS IS SUFFICIENT.
THE FAILURE no COMPLY WITH
THE LAW AS TO SOME OF THE
DEBTS DOES NOT VITIATE THE
ASSIGNMENT. BUT DESTROYS
THE PREFERENCE OF THE
DEBTS AS TO WHICH THE LAW
is NOT COMPLIED WITH.
This was an action to set aside an as
6ignment made for the benefit of credi-
tors on account of an alleged defective
schedule of preferred debts. There was
g. judgment for plaintiff and defendants
appealed.
The court says:
1t is well settled in this State that
the failure TO file with the clerk of the
Superior Court. within five days after
the filing for registration of the deed of
assignment, of the verified schedule OF
preferred debts required by the act of
1888 renders the assignment absolutely
null and void.
The questions now before us are: Q)
Does the schedule. as filed. comply with
the terms of the statute, by sufficiently
stating the nature of each preferred
debt? And co does the failure to sufIi-
GENTLY specify some of the debts vitiatc
the entire assignment, or only destroy
the preference as to those particular
debts?
Section !. c. 1853, Laws 1898. is as fol-
1.-THE Court quotes the law and pro-
cecds.
We have, then. as essential requisites.
the name Of the creditor and the
amount. date. and nature of the debt
In their absence the debt remains n
debt. but has no preference. If the debt
or Is bound only as surety. it should be
so stated, as his creditors might have
some rights of subrogation or contribu-
tion The object Of the act was to give
the creditors convenient opportunity
OIL hSccrtaining the nature of the pref
ercnccS. and to put such Information
verified by the oath of the assignor in
such form and place as to be equally
accessible to all. While it is entitled IAN
net to prevent fraudulent assignments
IT had no purpose to prevent honest as
slGnmcnts, nor, indeed to throw around
thcm any unnecessary restriction hut
simply to give those most deeply inter
ested reasonable opportunity OF as
certaining the truth.
We do not think that such provisions
are unreasonable. and we feel IT TO Inc
Our duty to give them such Il reasonable
construction as will efrectually carry
out their beneficial purpose Tho
schedule gives the names of all the pre-
ferred creditors, and the amount of
each debt: but in many instances IL
gives neither the date nor the consid
Grafton of the debt. both of which are
essential. If 1t involved n long account
the items need not be given: but the
nssiSnor could at least state the date
ana character of the items i'm general
terms. such as amount or-balance due
on open ledger account for dry goods
Cor groceries or both bought on the
1st day of May, 1876 Cor between the
1st day Of May and the LIST day of
July)." rs the case might be- This
would give the creditor sufficient infor
mation rs TO the character of the trans
action to enable him to investigate it. If
he saw nt.
Where the debt is reprcsentated by n
note its considcra lion should be given
the same as an open account, such as
borrowed money, merchandise, or what
ever it may be. The moro statement