Assignments void as to creditors

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  • (a) Every assignment shall be void as to the creditors of the assignor if —

    • (1) it gives a preference of one debt or class of debts over another, except a preference to any person of not more than the amount due for sixty days for labor or wages;

    • (2) it requires any creditor to release or compromise his demand;

    • (3) it reserves any interest in the assigned property or any part thereof to the assignor or assignors, or for his or their benefit, before his or their existing debts have been paid; or

    • (4) it confers any power upon the assignee, other or different from those contained in this chapter.

  • (b) If the assignor or assignors fail to make the inventory required to be made by him or them by this chapter within the time required by this chapter, the assignment shall not be void, but the court may by attachment or other proper remedy compel the making and return thereof by the assignor. An omission of any property, or of the name or claim of any creditor therefor, shall not avoid the assignment.


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