New York Court of Appeals

Leitch v. . Hollister and Others.

December 5, 18504 N.Y. 211

Summary

The Court affirmed the lower court's decree, holding that the debtor's assignment of a chose in action to certain creditors for the purpose of securing their specific demands, even though it reserved any surplus to the debtor, was valid and not void as a fraudulent trust. The Court distinguished such assignments from general assignments that create a trust for the debtor's benefit, which are fraudulent and void.