Court Opinion

ID: 8636252
Source: CourtListenerOpinion
Date Created: 2022-11-24 19:45:44.555432+00
Date Added: 2024-06-11T16:55:56.305620
License: Public Domain

BLATCHFORD, District Judge.
I understand from the affidavit of the bankrupt, that on each occasion when each of the notes coming to each of the four unpaid creditors fell due, he had ready and in hand the money to pay them, according to the terms of the composition. In respect to such money, he was a trustee thereof for the creditors. Although a delivery of the notes to the register was a delivery of them to the creditors, so as to absolve the bankrupt from the necessity of making any other delivery of the notes to the creditors, yet, when the time came to pay the notes, it was the duty of the bankrupt, if he could find no one who would take the money for the four creditors, to pay the money into the bankruptcy court; and this all the more because he must have known that while those creditors were prosecuting their petition of re-' view they would not take either the notes or the money. In fact, the affidavit of the bankrupt shows that the notes, when they severally matured, remained with the register, and it is to be inferred that the bankrupt then knew that fact. The bankrupt, even if he had tendered the money in each instance to each of the four creditors personally, would not have discharged his whole duty without paying it into court on their refusal to receive it, unless he was willing to take the risk of being ready to pay it whenever afterwards called upon to pay it. As it was, on the facts shown by liim, he ought to have paid it into court.
If he had done so, he would have discharged himself from responsibility. The creditors are entitled to an order that he pay them the money.