In re the Assignment of Vietor

Headnote

Matter of Vietor, 183 App. Div. 883 , affirmed.

Appeal, by permission, from an order of the Appellate Division of the Supreme Court in the first judicial department, entered March 7, 1918, which affirmed an order of Special Term allowing on the claim of the appellant herein the sum of $63,381.27, being the difference between $133,030.23, the amount of said claim as filed, and $69,648.96, the value of its collateral security. Appellant claimed that it was entitled to dividends upon the total amount of its claim as filed, that is, upon the amount owing at the date of the assignment, and that it was entitled to receive the full amount of such dividends as well as to receive the proceeds of its security until the debt shall have been paid in full. The following questions were certified: “ (1) In the administration of an estate, pursuant to the provisions of the Debtor and Creditor Law, as amended'by chapter 360 of the Laws of 1914, shall an otherwise provable claim of a partially secured creditor be allowed for the full amount owing at the date of the assignment, payments from any dividends declared thereon being limited by the balance owing over and above the value of such security? (2) In the administration of an estate, pursuant to the provisions of the Debtor and Creditor Law, as amended by chapter 360 of the Laws of 1914, shall an otherwise provable claim of a partially secured creditor be allowed only for the difference between the amount owing at the date of the assignment and the value of the security held by claimant for such debt or claim, dividends being computed only upon such difference? ”