Page:Federal Reporter, 1st Series, Volume 9.djvu/547

532 rEDERAL REPORTER. �such a lien upon tiie fund as will be enforced and protected by a court of equity. �In Story, Equity, lOM, the learned author says : "A trust wbuld be created in favor of the equitable assignee of the fund, even if the assignment is of a part only of the amount, and would constitute an equitable lien upon it." �In Christmas v. Russell, 14 Wall. 84, the language is : "An order to pay out of a specified fund bas always been held to be a valid assign- ment in equity, and to fuliil all the requirements of the law." �The case of Savings Bank v. Adae, 8 Fed. Eep. 108, is in principle identical with the present. A party drew bis check on a bank in favor of a creditor, and next day failed. The check waa presented for payment and was refused, although when drawn the drawer bad on deposit to bis credit in the bank more than its amount. The bank brought a bill of interpleader against the holder of the check and the assignee in insolvency of the drawer, and it was held that the check was an equitable assignment of that amount, and its holder acquired a lien therefor and was entitled to its payment. �These authorities, together with many others of a similar import, sustain the lien of E. K. Glover on this policy and its proceeds as security for the payment of the loan of $1,000 made by him to G. G. Glover, and it is so decreed. ���CooNS & Braine v. Tome and others. {Oircuit Court, W. D. PennsyUania. December 17, 1881.) �COKPORATIONS— DiRECTOES— CbEDITORS. �The directors of a corporation stand in confldential relations to its creditors, towards whom they are bouad to act with perf ect f airness. They are, at least, quaH trustees for the creditors ; and where the corporation is insolvent, good faith forbids that the directors should use their position to save themselves, or one of their number, at the expense of other creditors. �SaME— iNSOLTBNCT — PREFERENCES. �"Where the board of directors of an insolvent corporation confessed a judg- Dient against the corporation in favor of one of their number, who was also the president of the corporation and principal stocliholder, with a view of giving him priority of lien over another creditor, who was about to obtain a judgment in a judicial proceeding, hdd, that such preference could not be upheld, but that the two judgments must stand on a footing of equality in respect to the commencement of the lien, and share pro rata m the proceeds of the property available for their payment. ��� �