The Montgomery advertiser., 1905-09-12

nrorertv ia sold under an execution, and the purchaser at said sale supse- ouently sells separate portions of said property to two or more other paIu1e' in order for the original owner to e- deem the lands so sold, 1t IS not neces. sary that he should make q tenue1 '. the purchase price. together win tne other charges fixed by the statute. 70 the original purchaser and each or ms vendees; but. under such circumstances. the original owner. seeking redemption. can come into equity by paying into court the money which the law re- quires. and ask the court to distribute 1t to the parties according to their respective interests and rights. ana or fer to do and pay whatever more az, ditional thereto may be just ana eouitsbIe: and upon such averments and offer, he can maintain bill to redeem. 7 A bill to redeem: sufficiency or offer to pay for execution of deed.-- Where a bill is filed in court of equity seeking to redeem lands sold under execution, and the complaint offers to pay all lawful charges, and asks TOT information as to their amount, the cos. of executing deed will be consioereo as included in complainantss offer to do equity.
 Affirmed in part; and, in part, re- versed, rendered and remanded.
 Opinion by Simpson. J.
 HALL & FARLEY. TRUsTEEs. vs. ALABAMA TERMINAL AND IMPROVEMENT COMPANY.
 Bill in Equity by Judgment Creditor to Subject Unpaid Subscriptions to
 Capital Stock of Corporatio nto Payment of Judgment.-Appeal from Montgomery Chancery Court 1. Fraudulent Conveyance; choses Tn action.--A chose in action was not within the purview of the statute or lS Elizabeth against fraudulent convey ances, until after the passage of the Judgment Act" 1 and Victoria, out since this latter enactment. they have been uniformly held to be within the scope of the former.
 q Same. same.-The statute of IS Elizabeth directed against fraudulent conveyances. is part of the common law Of this State, and the statute (Code, S. 2156) is but declaratory Of the common law. and under that sec ton, and Sections 2171 ct seq. chooses inaction are personal property within the meaning thereof.
 3. Equity jurisdictions; remedy at law; fraudulent conveyance; chooses in action.-The remedy in chancery by bill to subject property fraudulently con veyed, cannot be allowed as to tangible property, and denied as to intangible property, with any show of reason; hence where a chose in action has been assigned with intent to hinder, delay or defraud creditors, they may hle bill to reach such assets, although. they have a remedy at law by suit and garnishment, wherein the bona fides of the assignment may be inquired into, and if found fraudulent, be disregarded.
 {. Same: same; same; garnishment.-- The original garnishment act of ls1S, made no provision by which the bona fides of an assignment of a chose in &C., tion could be inquired into, and if fraudulent. set aside. and this defect in the remedy at law was not cured un- til the amendment of the garnishment laws in 1S40. The creation by statute of this legal remedy did not oust the pre- existing equity Jurisdiction.
 5. Same: same; same.--A creditor with a lien has the same right to sub Ject to his debt property frauduiently conveyed by the debtor, as is given to creditor without a lien by section SIS of the Code.
 6. Fraudulent conveyance: corpora tions-The purchase by corporation of shares of It's own capital stock Is a fraud upon its creditors, since the transaction involves a transfer of as- sets to the stockholder, and the acqui- sition by the corporation. instead of the assets thus diverted, of a mere right to reissue such shares, which right is of no value as assets, to the creditors.
 !. Same; same.-Money is leviable property, and money paid by a debt or corporation for shares of its own stock, Is property fraudulently transferred, so far as creditors of the corporation are concerned; so. too. investment bonds of another corporation, owned by the debtor corporations; also, notes or obligations of a subscriber to the capi- tai stock for the amount due upon his subscription. And money so paid, or such investment bonds, or notes or ob- legations for subscription, which are transferred by the corporation in pay ment OF purchase of shares of It's own capital stock. may be proceeded against by a creditor of the corporation, by bill in equity, to set aside the transfer as fraudulent, and subject the assets to the payment of the debts of the cor poration.
 8. Same:> same.--An arrangement whereby a debtor corporation, for the purpose of releasing and acquitting a solvent subscriber to its stock from his obligation to pay for the same. &C., cepts the obligation of a known ln- solvent person, to whom the subscriber had transferred his stock and there upon releases the solvent subscriber, is in legal effect. a transfer of property by the corporation to the solvent sub scriber without consideration, and Is void as to creditors of the corporation.
 9. Same; collateral security.-The general title to a chose in action which has been transferred as collateral se- curity for debt, remains in the as- signing debtor. The creditor has a lien on the chose. and should he be dispossessed thereof by the deceit of the debtor. he may, at his option assert his lien thereon or proceed against the debtor. treating the assigned chose as the unincumbered property of the debtor. But should the creditor seek to enforce his lien on the chose in &C., tion, his remedy is at law, and not by bill to subject 1t as property fraudu- lently conveyed by the debtor.
 Reversed and remanded.
 nEV kxy