BANKRUPT'S INSURANCE.

New Zealand Herald, Volume LXI, Issue 18843, 18 October 1924, Page 13

BANKRUPT'S INSURANCE.

QUESTION OF UNITY.

PLEDGED A3 A SECURITY.

[ux TELECiiiAI'H.— PRESS ASSOCIATION.]

WELLINGTON. Friday. Ihp Court of .Appeal is considering a question arising out of the bankruptcy of Frank Percival Claridgp, of Christchurch. The National Bank proved in his estate for £840, and the proof was rejected by the official assignee to the extent of £410, on the ground that the debt. to the bank had already been reduced by the payment of that amount by the A.M.P. Society. This £410 was the proceeds of life insurance endowment policy 011 the life of bankrupt, which lie had assigned tome time previously to the bank to cover an advance by it. The policy matured two days after the bankruptcy. -The hank collected the proceeds, paid them to a suspense account, and, later, moved for the lull amount of its debt. The question for the Court is whether the pledging or mortgaging of a life insurance policy destroys the protection against the trustee in bankruptcy or the body of creditors given to policies by section 65 of the Life Insurance Act. Mr. Hislop appeared for the National Bank and Air. Donne!'" for the official assignee. The Court reserved judgment.