Minneapolis Threshing Machine Co. v. Calhoun

SMITH, J.

(concurring). The sale of the mortgaged property in any other manner than by foreclosure extinguished the lien of the mortgages. The proceeds of the sale were not thereafter subject to- or affected by the mortgage liens. The real question, then, arising in this case, is whether an agreement between a debtor and his creditors that a certain specified portion of the property of the creditor shall be placed in the hands of a trustee, to- be converted into money in a manner not fraudulent as to other creditors, and the money so- realized applied in payment of debts actually -due and owing to ,such creditors, is valid as against the other -creditors of the debtor. The right of the debtor •to prefer one -set of creditors being' conceded, such a mode of making payment in good faith and without any fraudulent intent is valid.

I therefore concur in the affirmance of the judgment.