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it will be sustained although it has the effect to delay, hinder or defraud other honest debts of the debtor.11

Sec. 508. Exceptions as to exempt property.

The same rule does not apply as to the disposal of exempt property as to property that is not exempt. Property not exempt is always subject to the payment of debts, and any conveyance thereof is subject to the rights of creditors. A husband can transfer exempt property without consideration, and his creditors cannot complain."

12

This has been the theory that a debtor in disposing of his property, can commit fraud upon his creditors only by disposing of such of his property as the creditor has a legal right to look to for his pay, and that a creditor of a husband cannot inquire into the good faith of the husband in deeding the homestead to the wife.13

Sec. 509. The fraud may be avoided, when.

A creditor may avoid the act or obligation of his debtor for fraud, only where the fraud obstructs the enforcement, by legal process, of his right to take the property affected by the transfer or obligation.14

11 Brittain v. Burnham, 7 Okla. 522, 60 Pac. 241; Cutler v. Pollock, 4 N. D. 205, 59 N. W. 1,062.

12 Kershaw v. Wiley, 22 Okla. 672; 98 Pac. 909; Hixon v. George, 18 Kan. 253.

13 Kershaw v. Wiley, 22 Okla. 672, 98 Pac. 908; Monwe v. May, 9 Kan. 466; Mitchell v. Skinner, 17 Kan. 563; Sproul v. Atchinson, 22 Kan. 336; Merchants v. Copplin, 1 Kan. App. 599, 42 Pac. 263. The spirit of the homestead law is to protect the wife and family against the improvidence of the head of the family as well as against urgent

creditors, and no one can complain if the wife of an insolvent husband refuses to sign a deed for the sale of the homestead until her husband agrees that the money procured as the proceeds of such sale may be transferred to her, and the execution of such deed by her is ample consideration to support the transaction. Kershaw v. Wiley, 22 Okla. 672, 98 Pac. 909.

14 Snyder, 2,934; Wilson, 2,776: Dakota Code, 4,658 (1887); California, 3,441 (Kerr), identical; Brown v. Campbell, 100 Cal. 635, 35 Pac. 433, 38 Am. St. Rep. 314.

In California it was held that where the officers and stockholders of one corporation form another, and convey all the property of the former to it, in fraud of creditors, the latter corporation will be regarded as a continuation of the former, and a court of equity will hold the assets of the latter liable for the debts of the former, though there has been recovery of judgment for the debt, and the return of the execution unsatisfied, as required by the code (Civil Code, 3441), which declares that: "A creditor can avoid the act or obligation of his debtor for fraud only when the fraud obstructs the enforcement, by legal process, of his right to take the property affected by the transfer or obligation."' 15

Sec. 510. Question of fraudulent intent one of fact-Excep

tions.

In all cases arising under this chapter, except as otherwise provided in the statute (Snyder, 2933; Wilson, 2775), the question of fraudulent intent is one of fact, and not of law; nor can any transfer or charge be adjudged fraudulent solely on the ground that it was not made for a valuable consideration.16

Sec. 511. Fraudulent debt due when liability occurred.

In all cases where a debtor has fraudulently contracted a debt, or fraudulently incurred a liability or obligation, for which suit is about to be, or has been brought, such debt, liability or obligation will be deemed due at the time such liability was incurred.17

15 Blanc v. Paymaster, 95 Cal. 524, 30 Pac. 765.

16 Snyder, 2,935; Wilson, 2,777; Dakota Code, 4,659 (1887).

17 Act of March 8, 1895; Wilson, 2,778.

Sec. 512. The procedure by which a conveyance in fraud of creditors is set aside The petition-Ordinary

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Comes now the plaintiff, and, for his cause of action herein,

alleges and states:

1. That at the

County, Oklahoma, the plaintiff recovered a judgment against

the defendant,

thereon from the

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ing to $ unsatisfied.

which judgment still remains in full force and

2. That on the

day of

19-, plaintiff caused

an execution to be issued out of said court against the property

which execution, on the

of the said defendant, day of, 19-, was, by the sheriff of said county, returned unsatisfied, and there is now due to plaintiff, on said judgment, the sum of $

3. That on the

day of, 19, said defendant,

then

conveyed the following described property to defendant, without consideration, and with intent to hinder, delay and defraud his creditors, as said defendant, well knew, to-wit: (Here specifically describe the real estate conveyed.)

to

WHEREFORE, plaintiff prays that the deed of conveyance from the said may be declared null and void, and that said property may be ordered sold as required by law, and the proceeds thereof applied to the payment of plaintiff's judg ment, and for such other relief as is just and equitable.*

Attorneys for Plaintiff.

*Adopted from Whittaker's Code Forms.

Sec. 513. Petition by judgment creditor to set aside fraudulent mortgage and marshal liens.

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Comes now the plaintiff, and, for his cause of action herein,

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of $

debt, and $

rate of

for the sum

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costs of suit, with interest at the per cent. from the date of judgment, according to the stipulations of a certain promissory note, upon which said action was brought, which said judgment is in full force and wholly unpaid and unsatisfied, and which said judgment is a lien upon the real estate hereinafter described.

day of

-, 19, the said

2. That on the being then seized in fee simple of the following described real estate, in County, Oklahoma, to-wit: (Here specifically describe same), conveyed the same by deed of mortgage to his creditor and codefendant, , ostensibly for the purpose of securing a certain promissory note of that date, executed and or order, for the sum of $ interest thereon from date until paid, which said note and mortgage were, in truth, executed and delivered by said

delivered by said

due

to said
years after date, with

to said

without any consideration therefor, but with intent, then and there, and thereby, to cheat, hinder, delay and defraud the creditors of the said -, and especially the plaintiff,

who was at the time a creditor of the said defendant, who then owed plaintiff the debt for which said judgment was recovered, all of which facts were then and there well known to said at the time of his taking such note and mortgage.

3. That at the time of the making of said mortgage, the said was in failing circumstances, and thereby conveyed and incumbered the real estate of which he was then possessed, without consideration as aforesaid, with intent to cover the same up and place it beyond the reach of his creditors, and reserved no estate whatever, out of which plaintiff's claim could be made, or can be made, and is now wholly insolvent.

day of

4. That on the , 19, and while the actions were pending against him in which the judgments aforesaid were recovered, he, the said

executed and delivered

to his deed of assignment, thereby conveying the real estate aforesaid, being all the real estate of which he was then possessed, together with all his personal estate and property, for the use and benefit of the creditors of him, the said which said deed was filed for record according to law, and said duly qualified as said assignee, and has been acting as

such ever since; that plaintiff called upon said as such assignee, and requested him to commence an action in this court, for the purpose of setting aside the fraudulent mortgage and conveyance, and ascertain the validity, amounts and priorities of the claims and liens of the creditors of said upon said premises, but he absolutely refused so to do, and still refuses, and will not give his consent to be made a party plaintiff to this action for that purpose, and he is, for that reason, made a party defendant to this action.

5. That said

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19-, filed his petition in the proper court of said county of in which petition he asked for an order to sell the real estate described in the petition of plaintiff in this action, which said real estate had come to him, the said under and by virtue of said assignment, for the purpose of being administered, and applied to the payment of the debts of said assignor, and that plaintiff asked leave to be made a party defendant in said action, with leave to answer, which leave was, by said court, refused.

and

claim some in

6. That the defendants, terest and lien on said premises, the precise nature of which is

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