Heritable Security – Ranking – Indefinite Payments – Assignation. – A creditor held an heritable security for repayment of his advances, to the extent of andpound;12000. He also held an adjudication debt against the same debtors, for a bank debt paid by him for them, which was not included in the heritable bond. On the bankruptcy of the debtors, and ranking and sale of their estate, Held, that he was entitled to impute indefinite payments made to him to his least secured debt, so as to make the heritable bond cover the whole debts due to him within the amount of that security; and, therefore, that he was preferable, both for the balance due on the bond debt, as well as for the adjudication debt. In this last debt, another party was bound as co-surety. Held, that on payment, he was not bound to grant the creditors an assignation to his claim.
Citations:
[1787] UKHL 3 – Paton – 92
Links:
Jurisdiction:
England and Wales
Insolvency
Updated: 23 March 2022; Ref: scu.581021