Pierce Butler

“ Unless required by the act, the meaning of the word 'creditors' as used in section 3a (1) is not to be restricted to those whose claims are provable at the time of the fraudulent conveyance.
Section 1 declares: 'The words and phrases used in this title and in proceedings pursuant hereto shall, unless the same be inconsistent with the context, be construed as follows: * * * (9) 'creditor' shall include anyone who owns a demand or claim provable in bankruptcy, and may include his duly authorized agent, attorney, or proxy.' 11 U.S.C. § 1 (9) , 11 USCA § 1 (9) . ”

“ The Circuit Court of Appeals sustained respondent's contention that, to constitute an act of bankruptcy, a fraudulent transfer must hinder, delay, or defraud a creditor holding a claim provable at the time of such conveyance, and held that petitioner's claim against respondent was contingent and not provable until the entry of the judgment against Mogliani, and that therefore respondent committed no act of bankruptcy. ”

“ Under the common-law rule a creditor having only a contingent claim, such as was that of the petitioner at the time respondent made the transfer in question, is protected against fraudulent conveyance. And petitioner, from the time that it became surety on Mogliani's bond, was entitled as a creditor under the agreement to invoke that rule. ”