563. Appropriation of securities.

Where property of one partner is held as a security both for his debt and for a debt of his firm, the creditor may realise it and pay himself the partner's debt in full, and then, placing the balance of the security to a suspense account, prove for the whole amount of the joint debt1. In such a case he may appropriate his security to the best advantage, and the court would, if necessary, in a proper case order a dividend on the joint estate to be declared before one on the separate estate

Popular documents