31-2-209. Assignment -- when void. An assignment for the benefit of creditors is void against any creditor of the assignor not assenting to the assignment in the following cases:
(1) if the assignment gives a preference dependent upon any condition or contingency or with any power of revocation reserved;
(2) if the assignment tends to coerce any creditor to release or compromise the creditor's demand;
(3) if the assignment provides for the payment of any claim known by the assignor to be false or fraudulent or for the payment of more upon any claim than is known to be justly due from the assignor;
(4) if the assignment reserves any interest in the assigned property or in any part of the property to the assignor or for the assignor's benefit before all existing debts are paid;
(5) if the assignment confers upon the assignee any power that, if exercised, might prevent or delay the immediate conversion of the assigned property to the purposes of the trust;
(6) if the assignment exempts the assignor from liability for neglect of duty or misconduct.
History: En. Sec. 4518, Civ. C. 1895; re-en. Sec. 6144, Rev. C. 1907; re-en. Sec. 8620, R.C.M. 1921; Cal. Civ. C. Sec. 3457; Based on Field Civ. C. Sec. 1932; re-en. Sec. 8620, R.C.M. 1935; R.C.M. 1947, 18-309; amd. Sec. 217, Ch. 685, L. 1989; amd. Sec. 990, Ch. 56, L. 2009; amd. Sec. 142, Ch. 264, L. 2013.