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Duty of Assignees

The assignee being a trustee for the creditors cannot be controlled by the assignor in the matter of payments. The assignee is first accountable to the creditors, and his power and duty are measured by the terms of the assignment. An assignee must exercise diligence and care in the administration of the property assigned, and cannot apply it to any other purpose than the payment of debts. The surplus, if there be any, will revert to the respective owners. No debt known to be fictitious must be paid by the assignee, who is held liable for ordinary negligence in the matter.

It is the duty of the assignee to preserve the property and convert it into cash, without unreasonable delay, and after giving reasonable notice to creditors. An assignee cannot bid in assigned property, where the amounts and validity of his claim have not been determined. A failure to give the required bond will not relieve the assignee from liability. An assignee cannot appoint a substitute, but he may employ assistants, if necessary.

Accepting co-assignees are bound to co-operate, and, in certain cases they are liable for each other's acts. An assignor's creditors, cannot attach the property after the assignment is delivered to the assignee.

An assignment, if recorded before the entry of judgment, takes precedence as against the judgment.

An assignee cannot renounce his trust at will. Trusts created by assignments are limited to twenty-five years.