TITLE 10

Courts and civil procedure–Procedure in particular actions

CHAPTER 10-4

Assignment for Benefit of Creditors

SECTION 10-4-6



   § 10-4-6  Effect of assignment on liens.

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Every assignment at common law for the benefit of creditors shall be effectual

to dissolve any attachment, levy, or lien placed upon the property of the

assignor not more than four (4) months prior to the making of the assignment,

and the costs in full of the attachment, levy, or lien shall constitute a

preferred claim against the assigned estate as part of the costs of

administering the trust. The property affected by the attachment, levy, or lien

shall be deemed wholly discharged and released from the attachment, levy, or

lien and shall pass to the assignee as part of the assigned estate, and the

superior court may order such conveyance as may be necessary to carry the

purposes of this section into effect; provided, that nothing contained in this

section shall have the effect to destroy or impair any title obtained by the

attachment, levy, or lien by a bona fide purchaser for value, who shall have

acquired the attachment, levy, or lien without notice or reasonable cause of

inquiry, or to dissolve, vacate, destroy or impair any lien which exists at

common law or any lien for which provision is made in chapter 9 of title 6A,

chapter 3 of title 9, chapters 28, 29, 30, 34, or 35 of title 34, or chapter 15

of title 39.



History of Section.

(P.L. 1902, ch. 984, § 4; C.P.A. 1905, § 1220; G.L. 1909, ch. 338,

§ 4; P.L. 1909, ch. 456, § 1; G.L. 1923, ch. 389, § 4; G.L.

1938, ch. 595, § 4; G.L. 1956, § 10-4-6; P.L. 1997, ch. 326, §

94.)