for the district of Florida, to which these creditors and the claimant were parties, as well as the debtor, in which,upon similar issues, the amount of their debts, respectively, was adjusted for the same purposes. And, further, the debtor has died leaving the sum due on these policies as a part of his estate, if it belongs to his estate, within this jurisdiction, with no other creditors, so far as yet appears here. These grounds may be foulld sufficient to uphold the proceedings. Motion for injunction granted·
..:ETNA NAT. BANK
and others v. UNI'fED others.
STATES LIFE INS.
(Oircuit Oourt, S. D. New York.
FRAUD ON CREDITORS-PREMIUMS PAID TO LIFE INSURANCE COMPANY-STATUTE OF NEW YORK.
A bill in equity may be maintained by creditors of a deceased debtor to reach premiums paid to a life insurance company in fraud of creditors of the insured out of funds of the insured, and in furtherance of a combination and conspiracy between the inRured and his wife to hinder, delay, and defraud the creditors of the deceased, notwithstanding the said pnlicies were made payable to the wife of the deceased, and notwithstanding the provisions of the statutes of New York exempting such policies from the claims of creditors of the husband, where the premiums do not exceed $GOO. But the creditors have no claim upon the insurance in such case beJ'ond the amount of the premiums and interest therton.
In Equity. William B. Hornblower, for plaintiffs. John W. Weed, for defendants. WHEELER, J. The policies in this case upon the life of the husband were originally made for the benefit of, and payable to, the wife. According to the bill the premiums were paid from thjl property of the husband in fraud of the rights of hiscreditors, who bring this bill. If this is all true, the amount due on the policy does not represent the property of the husband, nor any part of his estate, beyond the amount of the premiums. The insurance was upon her interest in his life, not the creditors' interest in his life, and the amount due represents her interest, and, beyond the amount of the premiums, is hers. An amount equal to the amount of the premiums may represent so much of his estate, and in equity belong to his creditors. They may ultimately, by these proceedings, reach that amount, but there appears to be no fair ground on- which they can reach more. Motion granted for an injunction to restrain payment of so much of policies as equals in amount the premiums paid thereon, with interest, and stay of proceedings vacated as to residue.
OAlt LIFE INS. CO.
BRYANT and others v. CHA.RTER OAK
«Jz'1'cuit Court, N. D. illinois.
MORTGAGE-CONVEYANCE WITH RESERVATION OF LIFE-EsTATE-PAYMRNT OF SURANCE MONEY-RENEWAL OF MOUTGAGE-l!'OHECLOSURE.
B. borrowed $19,OUO from I., and gave his bond for that amount, and secured it by mortgage on certain real estate in Chicago. The mortgage provided that B. should keep the property insured against tire and assign the policies as collateral security, which was done. The mortgage provided that in case of loss the mortgagee and his assigns might collect the policies and apply the money in payment of the loan. B. subsequently conveyed the property, in consideration of love and affection, to his children, reserving a life· estate therein to himself. 1. sold and assigned the bond and mortgage to C., and the hond became due and remained unpaid until the buildings were destroyed. by tire. C. collected $8,875 on the policies and gave B. credit on his bond for that amount. Subsequently, at his request. B. was allowed to renew the mortgage for five years, and to receive and expend the amount collected on the policles, less the interest due on the bond, III restoring the burned buildings. Held, that the money paid to C. did not extinguish the mortgage pro tanto; that the agreement between B., liS life tenant, and C. was valid; and that C. was entitled to foreclose the mortgage on default in payment thereof.
In Chancery. Hugh L. Mason, for complainant. Gyrus Bentley, for defendant. GRESHAM,J. James M.Bryant borrowed $19,000 from E. S. Isham, on the seventeenth day of May, 1866, and on the same day gave his bond for that amount, and, to secure its payment, executed a mortgage upon real estate in Chicago. It was made the duty of the mortgagor, by a provision in the mortgage, to keep the premises insured against fire, and assign the policies to the mortgagee as collateral security. Policies were obtained and assigned in pursuance of this covenant. The mortgage also provided that the mortgagee and his assigns might collect the policies in case of loss, and apply the money in payment of the mortgage debt. On the twenty-eighth of August following, Bryant, in consideration of love and affection, by a quitclaim deed conveyed the mortgaged premises to his children, reserving a life-estate to himself. This deed contained the
"And it is hereby understood and agreed that the said party of the first part reserves the right and the power to charge each, any, and all of said lots or parcels of land by mortgages or trust deeds, conveying the fee-simple title thereof, for moneys raised. or to be raised, loaned. or borrowed thereon, for the purposes of improving or adding to the house or houses now upon" anyone or more or all of said parcels of land or lots. or erecting upon anyone or more or all of said lots, any new building or buildings, whenever, in his opinion, the same may be necessary or proper, by reason of injury or destruction of any house or houses now on said lots, or any of them, by fire or other casualty. or ordinary wear and tear from use, occupation, or time. Said improvements. if made, being for the benefit of those entitled. or to be hereafter entitled, to said lots, and it being right and proper to charge the whole estate in fee-simple with the moneys to be raised for such improvements. And it is further understood, provided, and agreed that no person or persons who