Printable Format58-2407. Same; effect as to creditors. Every such conveyance shall be presumed fraudulent as against the creditors of the person paying the consideration therefor; and where a fraudulent intent is not disproved, a trust shall in all cases result in favor of prior creditors to the extent of their just demands, and also in favor of subsequent creditors if there be sufficient evidence of fraudulent intent.
History: G.S. 1868, ch. 114, ยง 7; October 31; R.S. 1923, 67-407.
Law Review and Bar Journal References:
Creditor's remedies under civil procedure code in case of fraudulent conveyance, Charles L. Frickey, 17 K.L.R. 501 (1969).
"Professional Liability Insurance: Implication of Termination," Wayne T. Stratton, 77 J.K.M.S. 255, 260 (1976).
CASE ANNOTATIONS
1. Purchaser-debtor had conveyance made to third person to delay creditors. Hawley v. Smeiding, 3 K.A. 159, 164, 165, 42 P. 841.
2. Title in lender; possession by debtor; trust implied. Lyons v. Bodenhamer, 7 K. 455, 476, 478.
3. Fraudulent conveyance; effect as to parties. Weatherbee v. Cockrell, 44 K. 380, 384, 24 P. 417.
4. Title of trustee; rights of creditors; trust statute considered. Chantland v. Bank, 66 K. 549, 554, 72 P. 230.
5. Burden upon subsequent creditor to prove actual fraud. Bank v. Chatten, 69 K. 435, 437, 77 P. 96.
6. Effect of conveyance in fraud of creditors; homestead rights considered. Kline v. Cowan, 84 K. 772, 777, 115 P. 587.
7. Division by tenants in common; deed to wife; no trust. Knox v. Farguson, 97 K. 487, 488, 155 P. 929.
8. Burden upon creditor to prove debtor paid consideration for property. Citizens State Bank v. Fairchilds, 151 K. 882, 886, 887, 101 P.2d 923.
9. Section inapplicable where creditors are not involved. Staab v. Staab, 158 K. 77, 79, 145 P.2d 452.
10. Court did not err in declaring resulting trust; partnership property; purchase of real estate by one partner; evidence. Stauth v. Stauth, 2 K.A.2d 512, 513, 582 P.2d 1160.
11. Cited; a resulting trust is created where transfer is made to one party but consideration is paid by another. In re Krause, 386 B.R. 785, 836 (2008).
12. Purchase money resulting trust is abolished; purpose of abolishment discussed. In re Kasparek, 426 B.R. 332 (2010).