It is beyond the scope of this book to discuss the law as to conveyances and mortgages made in fraud of creditors, but in order that the references to the statutes affecting the law of mortgage may be as complete as possible, the provisions of the Fraudulent Conveyances Act and the cognate provisions of the Assignments and Preferences Act are set out below.

The Fraudulent Conveyances Act, R.S.O. 1914, c. 105, ss. 3 to 6, contains the following provisions with regard to conveyances (z) in fraud of creditors (a) :

(z) By s. 2 "conveyance" is defined as including gift, grant, alienation, bargain, charge, encumbrance, limitation of use or uses of, in, to or out of real property or personal property by writing or otherwise, and "real property" is defined as including lands, tenements, hereditaments, and any estate or interest therein.

(a) Ss. 3, 4 and 5 are derived from the English statute 13 Eliz.

short forms of conveyances, this section shall apply only to conveyances made after the 1st day of July, 1886.

39. It shall not be necessary, in order to maintain the defence of a purchase for value without notice, to prove payment of the mortgage money, or purchase money, or any part thereof.

40. Any property may be conveyed by a person to himself jointly with another person, by the like means by which it might be conveyed by him to another person, and may in like manner be conveyed or assigned by a husband to his wife, or by a wife to her husband alone or jointly with another person.

55. If any seller or mortgagor of property or his solicitor or agent conceals any settlement, deed, will or other instrument material to the title, or any encumbrance, from the purchaser' or mortgagee, or falsifies any pedigree upon which the title depends or may depend, in order to induce him to accept the title offered or produced to him, with intent to defraud such seller, mortgagor, solicitor, or agent, irrespective of any criminal liability he may thereby incur, shall be liable at the suit of the purchaser or mortgagee, or those claiming under him, for any loss sustained by them or either or any of them, in consequence of the settlement, deed, will or other instrument or encumbrance so concealed, or of any claim made by any person under such pedigree, whose right was so concealed by the falsification of such pedigree; and in the case of land in estimating such damages where the property is recovered from such purchaser or mortgagee, or from those claiming under him, regard shall be had to any expenditure by them, or either or any of them, in improvements on the land.

8. Every conveyance of real or personal property and every bond, suit, judgment and execution at any time had or made or at any time hereafter to be had or made with intent to defeat, hinder, delay or defraud creditors or others of their just and lawful actions, suits, debts, accounts, damages, penalties, or forfeitures shall be null and void as against such persons and their assigns.

4. Where a conveyance made by a tenant in tail is impeached under section 3, it shall nevertheless be as valid as against the heirs in tail, and all persons entitled in reversion or remainder as if this Act had not been passed.

5. Section 3 shall not extend to any estate or interest in real property or personal property conveyed upon good consideration and bona fide to any person not having at the time of the conveyance to him notice or knowledge of such intent.

6.-(1) Section 3 shall apply to all conveyances executed with the intent in that section set forth notwithstanding that the same may be executed upon a valuable consideration and with the intention, as between the parties to the same, of actually transferring to and for the benefit of the transferee the interest expressed to be thereby transferred, unless the same is protected under section 5 by reason of bona fides and want of notice or knowledge on the part of the purchaser.

(2) This section shall not apply to any instrument executed before the 2nd day of March, 1872.

It is provided by the Assignments and Preferences Act. R.S.O. c. 134, ss. 5 and 6, as follows (6) :

5.-(1) Subject to the provisions of section 6, every gift, conveyance, assignment or transfer, delivery over or payment of goods, chattels or effects, or of bills, bonds, notes or securities, or of shares, dividends, premiums or bonus in any bank, company or corporation, or of any other property, real or personal, made by a person at a time when he is in insolvent circumstances, or is unable to pay his debts in full, or knows that he is on the eve of insolvency with intent to defeat, hinder, delay or prejudice his creditors, or any one or more of them, shall as against the creditor or creditors injured, delayed or prejudiced be null and void.

c. 5. S. 6 was added in 1872 by the Ontario statute 35 V. c. 11, s. 1, passed for the purpose of declaring the "true construction" of the statute of Elizabeth.

(b) The effect of these sections is carefully and concisely stated in Cassels, Ontario Assignments Act, 4th ed. 1914, pp. 9 ff.

(2) Subject to the provisions of section 6 every such gift, conveyance, assignment or transfer, delivery over or payment made by a person being at the time in insolvent circumstances, or unable to pay his debts in full, or knowing himself to be on the eve of insolvency, to or for a creditor with the intent to give such creditor an unjust preference over his other creditors or over any one or more of them shall, as against the creditor or creditors injured, delayed, prejudiced or postponed, be null and void.

(3) Subject to the provisions of section 6, if such a transaction with or for a creditor has the effect of giving that creditor a preference over the other creditors of the debtor or over any one or more of them, it shall in and with respect to any action or proceeding which, within sixty days thereafter, is brought, had or taken to impeach or set aside such transaction, be presumed prima facie to have been made with the intent mentioned in subsection 2, and to be an unjust preference within the meaning hereof whether the same is made voluntarily or under pressure.