§ 32. Effect of concealment. Any secured creditor who with intent to evade the provisions of this article fails to disclose the existence of the security shall not be entitled to receive or retain dividends out of the general assets, unless he thereafter releases or surrenders to the liquidator the security which he has failed to disclose, or unless he procures such release or surrender if the security is in the possession of an indorser, surety, or other person secondarily liable for the insolvent debtor.

Terms Used In N.Y. Debtor and Creditor Law 32

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Insolvent debtor: means any insolvent person, partnership, corporation or business association involved in a liquidation proceeding. See N.Y. Debtor and Creditor Law 30
  • Liquidator: means any person administering assets in any liquidation proceedings. See N.Y. Debtor and Creditor Law 30
  • Secured creditor: means a creditor who has either legal or equitable security for his debt upon any property of the insolvent debtor of a nature to be liquidated and distributed in a liquidation proceeding, or a creditor to whom is owed a debt for which such security is possessed by some endorser, surety, or other person secondarily liable. See N.Y. Debtor and Creditor Law 30
  Previous section
Next section  
 Article 2-A Contents