In re Coleman

>1. Bankruptcy — Property of Bankrupt — Insurance Policies — Surrender Value. Where certain insurance policies belonging to a bankrupt hád no cash ■surrender value, but they had a collateral loan value and a paid-up insurance value, they had an inchoate value to which the bankrupt’s trustee was entitled as property, which, prior to the filing of the petition, the bankrupt could have transferred, etc. 2. Same — Bankrupt Act — Construction. Bankr. Act July 1, 1898, c. 541, § 70, subd. 5, 30 Stat. 565 [U. S: Comp.' St. 1901, p. 3451], authorizing a bankrupt to retain insurance policies having a cash surrender value by paying the amount thereof to the trustee, does not by implication deprive the trustee of the right to policies having an inchoate, but no cash surrender, value. 3. Same. Where a bankrupt held a life insurance policy, payable to his wife, if living, otherwise to his executors, administrators, and assigns, and, though such policy had no cash surrender value, the insurer voluntarily agreed to pay a certain sum for the policy, on condition it received a release from the bankrupt and his wife,' the bankrupt’s interest, though contingent, was assignable, and his trustee was entitled to sell such interest and to have the bankrupt assign the same.

In Error to the District Court of the United States for the Eastern District of New York.