Sec.1. The Title To Property Is Sometimes Transferred With Fraudulent
Intent. A Debtor, To Place His Property Beyond The Reach Of His
Creditors, Sells Or Assigns It To Others By Way Of Mortgage, Under The
False Pretense Of Securing The Payment Of A Debt; The Property To Remain
In The Possession And Use Of The Assignor.
Sec.2. Any Agreement Which Operates As A Fraud Upon Third Persons, Is Void.
It Is A Rule Of Common Law, That All Deeds Of Gift, And All Transfers Of
Goods And Chattels Made By Any Person To Secure Them For His Future Use,
Shall Be Void As Against Creditors; And That If Property Assigned Or
Sold Remains With The Seller Or Assignor, The Transaction Is To Be
Presumed Fraudulent. But Whether Such Conveyance Of Goods Is Only _Prima
Facie_ (At First View) Evidence Of Fraud, Which The Vendee Or Assignee
May Rebut By Proving The Sale Or Assignment To Have Been Made Honestly
And In good Faith; Or Whether The Transaction Is Fraudulent In Point Of
_Law_, And Void, Is A Question Upon Which The Decisions Of The Courts
In England As Well As Those In this Country Differ, And Which,
Therefore, May Be Considered As Not Conclusively Settled.
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