Any assignment by an insolvent debtor of his property for the benefit of his creditors in which any preference or priority is given to any creditor or creditors of the debtor by the terms of the assignment over any other creditor or creditors, other than as to any debts due to the public, or in which any provision or disposition of the property so assigned is made or directed other than that it be distributed among all creditors of the insolvent debtor equally, in proportion to the amount of their several demands and without preference or priority of any kind whatsoever, save only as to debts due to the public and save only as to such creditors as may accept the terms of such assignment and execute a release of their claim against the debtor, and except as hereinafter provided, shall be absolutely null and void and of no effect whatsoever.
S.C. Code Ann. § 27-25-10
Assignment by insolvent debtor
Applied in 4 court decisions — leading case Hovis v. Powers Construction Co. (In Re Hoffman Associates, Inc.) (1995)
Most recently applied in Hovis v. Grant/Jacoby, Inc. (In re Air South Airlines, Inc.) (February 2000)
1962 Code SECTION 57-351; 1952 Code SECTION 57-351; 1942 Code SECTION 9106; 1932 Code SECTION 9106; Civ
Official source: South Carolina Legislature. Reproduced from public-domain South Carolina statutes; confirm against the official source for the current text. Not legal advice.