Decisions upon the act 5th Parliament 1696, declaring Notour Bankrupts.
Subject_3 SECT. V.
Of Securities for Debts to be Contracted.
Riddel v. Creditors of Niblie
Date: 16 February 1782 Case No. No 211.
A disposition ex facie absolute, with a back-bond bearing, that no price had been paid, but that the infeftment was to subsist as security for debts due, and to be acquired by the disponee, sustained to the extent of debts contracted, whether before or after infeftment.
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Jamieson, upon the narrative of a price paid, disponed his lands of Langside to Niblie, absolutely and irredeemably; and on this disposition infeftment followed.
Of the same date with this disposition, a back-bond was granted by Niblie to Jamieson, declaring, that no price had been paid by him; but that the infeftment was meant to subsist as a security for certain debts of Jamieson, then in the person of Niblie, and for such other debts as Niblie should thereafter transact with Jamieson's creditors.
Both Jamieson and Niblie died soon after; and their respective creditors having transferred their debts to trustees, Mr Reid, for the creditors of Jamieson, instituted an action for setting aside the infeftment. It contained, among others, a conclusion for restricting the security thereby created, to the debts due to Niblie at the date of the infeftment, upon that part of the act 1696, c. 5. which annuls ‘infeftments in relief or security of debts to be contracted.’
The Lords, in respect this was not an infeftment in relief or security, but an absolute disposition to the property, sustained the same to the extent of the debts due by Jamieson to Niblie, at whatever time contracted.
Reporter, Lord Justice Clerk.Act. Ogilvie.Alt. Nairne.Clerk, Home.
Fol. Dic. v. 3. p. 58. Fac. Col. No 33. p. 54.
