142. Law of mortgage as it applies to bankrupts.

Dispositions of property made by a bankrupt between the date of presentation of the bankruptcy application or petition and the date when the property vests in the trustee are void unless approved or ratified by the court1, although this does not give a remedy against a mortgagee in respect of any property or payment which he received before the commencement of the bankruptcy in good faith, for value and without notice that the application or petition has been presented2. In the case of land, an application or petition in bankruptcy does not bind a purchaser3 of a legal estate

Popular documents