,*APT] #e 
,! ,LEGAL ,NATURE ( ,DEBT 

#ahdfahdf 

,PEOPLE 3 

,AU?OR 3 ,LYS&] ,SPOON] 

,TEXT 3 

,LYS&] ,SPOON]1 ,POV]TY3 ,ITS ,ILLEGAL ,CAUSES & ,LEGAL ,CURES4 ,BO/ON3 ,BELA ,M>%1 ,NO4 #be ,CORNHILL4 #a#h#d#f4 

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,! ,L,E,G,A,L ,N,A,T,U,R,E ,( ,D,E,B,T4 

,! NATURE ( DEBT1 AMID ! EXT5T ( ITS MORAL & LEGAL OBLIGATION1 HAVE BE5 V]Y MU* MISUND]/OOD2 & FROM ?IS MISUND]/&+1 & ! ]RONE\S JUDICIAL DECISIONS CONSEQU5T !REON1 HAVE RESULT$ P]PETUAL RU9 TO A L>GE PROPORTION ( DEBTORS3 UTT] CONFUSION1 & ! VIOLATION ( ALL NATURAL LAW 9 REG>D TO ! RI<TS ( CR$ITORS1 AS AGA9/ EA* O!R1 9 ! PROP]TY ( !IR DEBTORS2 & ! DE/RUCTION1 9 A GREAT MEASURE1 ( ALL CR$IT1 ?AT IS S\ND 9 ITSELF1 & SAFE & B5EFICIAL TO BO? DEBTOR & CR$ITOR4 

,?IS *APT] & ! SUCCE$+ ONE WILL ATTEMPT TO PROVE ?AT A DEBT-SU* AS IS EVID5C$ BY A PROMISSORY NOTE1 = 9/ANCE-HAS NO LEGAL OBLIGATION1 & G5]ALLY NO MORAL CITE1 BEYOND ! MEANS ( ! DEBTOR TO PAY AT ! TIME ! DEBT BECOMES DUE4 

,SOME ILLU/RATIONS WILL H]EAFT] BE GIV5 ( CASES1 :]E A MORAL OBLIGATION TO PAY MAY REMA91 AFT] ! LEGAL ONE HAS EXPIR$4 ,! EFFECT ALSO ( FRAUD1 FAULT1 NEGLECT1 & ! VIOLATION ( GOOD FAI?1 ON ! P>T ( ! DEBTOR1 WILL BE EXPLA9$ 9 A SUBSEQU5T P>T ( ! *APT]4 ,AT PRES5T1 ! >GUM5T WILL HAVE REF]5CE SOLELY TO ! LEGAL OBLIGATION ( DEBT1 & TO CASES :]E !RE HAS BE5 NO FRAUD1 FAULT1 NEGLECT1 OR VIOLATION ( GOOD FAI? ON ! P>T ( ! DEBTOR4 ,?AT ! DEBT1 9 SU* CASES1 IS LEGALLY B9D+1 AT MO/1 BUT TO ! EXT5T ( ! DEBTOR'S MEANS ( PAYM5T AT ! TIME ! DEBT BECOMES DUE1 IS PROV$ BY ! FOLL[+ >GUM5TS4 

#a4 ,! LAW REQUIRES NO IMPOSSIBILITIES ( ANY MAN4 ,IF1 !RE=E1 A MAN CONTRACT TO P]=M :AT PROVES TO BE IMPOSSIBILITY1 ! CONTRACT IS VALID ONLY = SO MU* AS IS POSSIBLE4 

,NEI!R IS A MAN B\ND1 BE=E HE 5T]S 9TO A CONTRACT1 TO KN[1 7BECAUSE IT IS IMPOSSIBLE ?AT HE %\LD KN[17 ! UTMO/ EXT5T ( HIS ABILITY2 NOR TO =ESEE1 7BECAUSE IT IS IMPOSSIBLE ?AT HE CAN =ESEE17 ALL ! CONT+5CIES & ACCID5TS ?AT MAY OCCUR TO DEFEAT HIS PURPOSES4 ,HE IS1 !RE=E1 B\ND ONLY TO ! FAI?FUL EX]CISE ( ALL HIS P[]S1 & ! FAI?FUL APPLICATION ( ALL HIS MEANS4 ,AS ?IS IS ! MO/ ?AT ! DEBTOR CAN CONTRACT =1 ! CR$ITOR IS B\ND TO KN[ IT1 &1 ( C\RSE1 MU/ ALWAYS BE PRESUM$ TO HAVE UND]/OOD ! CONTRACT1 SUBJECT TO ?AT LIMITATION4 ,A CR$ITOR IS1 !RE=E1 AS MU* B\ND TO JUDGE = HIMSELF1 :E!R ! MEANS & ABILITY ( ! DEBTOR WILL HE SUFFICI5T TO 5ABLE HIM TO FULFILL HIS CONTRACT TO ! LETT]1 AS IS ! DEBTOR HIMSELF1 UNLESS ! DEBTOR DO SOME?+ 9T5TIONALLY TO MISLEAD HIM 9 HIS JUDGM5T ( !M4 

#b4 ,A CONTRACT TO P]=M A MANIFE/ IMPOSSIBILITY IS AN IMMORAL & ABSURD CONTRACT2 & A CONTRACT1 ?AT IS EI!R IMMORAL OR ABSURD1 IS VOID FROM ! BEG9N+4 ,IT HAS NO LEGAL OBLIGATION :ATEV]4 ,& IF A P>TY PAY VALUE1 AS A CONSID]ATION = SU* A CONTRACT1 LIE MU/ LOSE IT1 UNLESS ! RECEIV] VOLUNT>ILY RE/ORE IT4 ,! LAW WILL NEI!R RE/ORE IT TO HIM1 NOR COMPEL ! FULFILLM5T ( EV5 ! POSSIBLE PORTION ( ! CONTRACT4 

,EV]Y CONTRACT W\LD BE AN IMMORAL & ABSURD ONE1 & !RE=E VOID FROM ! BEG9N+1 IF IT W]E A CONTRACT TO P]=M A P>TICUL> ACT1 OR TO PAY A P>TICUL> AM\NT ( MONEY1 AT A P>TICUL> TUNE1 AT ALL EV5TS1 & )\T ANY ,IMPLI$ RES]VATION = CONT+5CIES1 ACCID5TS1 & MISJUDGM5TS1 ?AT MAY MAKE IT IMPOSSIBLE TO FULFILL ! LETT] ( ! CONTRACT4 ,! ONLY WAY1 !RE=E1 TO MAKE ANY CONTRACT A MORAL1 REASONABLE1 &1 !RE=E1 VALID ONE1 IS TO UND]/& IT SUBJECT TO ! LIMITATION ( ALL CONT+5CIES ?AT MAY MAKE ITS FULFILLM5T IMPOSSIBLE2 & AS B9D+ ONLY TO ! EXT5T ( :AT %ALL BE POSSIBLE4 

,IF !N1 ! CONTRACT BE 5T]$ 9TO1 ) !SE LIMITATIONS IMPLI$1 IT IMPOSES NO OBLIGATION UPON ! DEBTOR TO MAKE GOOD1 \T ( MEANS ?AT HE MAY ACQUIRE AFT] ! CONTRACT %ALL HAVE EXPIR$1 ANY %ORT COM+S1 ?AT W]E OCCASION$1 NOT BY HIS FAULT1 NEGLECT1 OR BAD FAI?1 BUT BY CAUSES1 :I* FIX$ A LIMITATION UPON HIS ORIG9AL LIABILITY1 & ( :OSE EFFECTS ! CR$ITOR ( C\RSE TOOK ! RISK4#g 

#c4 ,TIME IS A MAT]IAL ELEM5T ( ! CONTRACT4 ,ALL ! LEGAL OBLIGATIONS ( ! CONTRACT1 ( NECESSITY1 COME TO MATURITY AT ! TIME AGRE$ UPON = ITS FULFILLM5T2 ELSE ! :OLE ( ! DEBT W\LD NOT BE DUE AT ?AT TIME4 ,AT ! MATURITY ( ITS LEGAL OBLIGATIONS1 IT IS PLA9 ?AT ! CONTRACT CAN ATTA* ONLY TO ! PROP]TY !N 9 ! H&S ( ! DEBTOR-= !RE IS NO?+ ELSE = IT TO ATTA* TO4 ,& IT IS PLA9 ?AT IT CAN ATTA* TO NO?+ ACQUIR$ BY ! DEBTOR SUBSEQU5TLY-BECAUSE TO ALL[ IT TO DO SO1 W\LD BE TO EXT5D ! OBLIGATIONS ( ! CONTRACT BEYOND ! TIME TO :I* !Y W]E ORIG9ALLY LIMIT$4 ,IT W\LD BE EQUIVAL5T TO CREAT+ A NEW CONTRACT1 = A NEW P]IOD ( TIME4 ,OR IT W\LD BE EQUIVAL5T TO SAY+ ?AT ! OBLIGATIONS ( ! CONTRACT HAD NOT COME TO MATURITY AT ! TIME AGRE$ UPON = ITS FULFILLM5T4 

,BUT FUR!R4 ,AL?\< ! PREC$+ CONSID]ATIONS >E SUFFICI5T TO PROVE ?AT A DEBT HAS NO LEGAL OBLIGATION BEYOND ! MEANS ( ! DEBTOR AT ! TIME ! DEBT BECOMES DUE1 !Y1 NEV]!LESS1 DO NOT CONVEY A FULL & CLE> IDEA ( ! TRUE NATURE & OBLIGATION ( ! CONTRACT ( DEBT4 ,& ?IS LEADS TO ANO!R PROPOSITION1 AS FOLL[S3 

#d4 ,A CONTRACT ( DEBT IS A M]E CONTRACT ( BAILM5T1 DIFF]+1 9 NO1 ESS5TIAL CLEM5T ( ! CONTRACT1 FROM O!R CONTRACTS ( BAILM5T4#h 

,?AT IT IS SO1 IS EASILY %[N4 ,?US A PROMISE TO PAY MONEY1 = 0VALUE10 ?AT HAS BE5 0RECEIV$10 IS EVID5TLY A M]E PROMISE TO DELIV] MONEY1 :I* HAS BE5 SOLD & PAID =2 BECAUSE ! 0VALUE10 ?AT HAS BE5 RECEIV$0 BY ! DEBTOR1 IS NO?+ ELSE ?AN ! EQUIVAL5T1 OR PRICE1 PAID BY ! CR$ITOR1 = ! MONEY :I* ! DEBTOR PROMISES TO DELIV]1 OR PAY TO HIM1 

,! RI<T ( PROP]TY1 9 ?IS MONEY1 ?AT IS TO BE DELIV]$ TO ! CR$ITOR1 7OR 9 A QUANTUM ( VALUE1 9 ! H&S ( ! DEBTOR1 SUFFICI5T TO PUR*ASE ! MONEY17 OBVI\SLY PASSES TO ITS PUR*AS]1 ! CR$ITOR1 AT ! TIME HE ?US BUYS1 & PAYS = IT2 & NOT1 AS IS G5]ALLY SUPPOS$1 AT ! TIME IT IS F9ALLY DELIV]$1 OR PAID TO HIM2 = IT IS ABSURD TO SAY ?AT :5 A MAN HAS B\<T & PAID = A ?+1 HE DOES NOT1 FROM ?AT TIME1 [N IT1 M]ELY BECAUSE IT IS NOT DELIV]$ TO HIM AT ?AT TIME4 ,A PROMISE TO DELIV]1 OR PAY MONEY1 ESPECIALLY :5 C\PL$ ) AN ACKN[L$GM5T ?AT ! EQUIVAL5T1 OR PRICE ( ! MONEY PROMIS$1 HAS BE5 0RECEIV$10 IS AS GOOD EVID5CE ?AT ! RIG_/IT ( PROP]LY 9 ! MONEY1 7OR 9 AN AM\NT ( VALUE SUFFICI5T TO PUR*ASE ! MONEY17 HAS ALREADY PASS$ TO ! PUR*AS]1 AS IS A DELIV]Y ITSELF4 

,! OBLIGATION ( DEBT1 !N1 ON ! P>T ( ! SELL] ( ! MONEY1 >ISES SIMPLY FROM ! FACT ?AT ! MONEY1 7OR AN AM\NT ( VALUE SUFFICI5T TO PUR*ASE ! MONEY17 :I* HE HAS ?US SOLD1 & RECEIV$ HIS PAY =1 & ! RI<T ( PROP]TY 9 :I* HAS ALREADY PASS$ TO ! PUR*AS]1 IS1 BY AGREEM5T1 TO REMA91 = A TIME1 9 HIS1 7! SELL]'S17 H&S1 = HIS USE4 ,& ! SUM ( HIS OBLIGATIONS1 AS A DEBTOR1 IS1 NOT1 AT ALL EV5TS1 TO PRES]VE & DELIV]1 BUT TO USE DUE DILIG5CE 

TO PRES]VE1 &1 7AT ! TIME AGRE$ UPON17 TO DELIV] TO ! PUR*AS]1 ! MONEY1 OR VALUE1 :I* HE HAS ?US SOLD TO HIM4 

,A DEBTOR1 !N1 IS A M]E SELL] ( VALUE1 7G5]ALLY MEASUR$ BY MONEY17 :I* LIE IS TO DELIV] TO ! PUR*AS] AT A TIME SUBSEQU5T TO ! SALE4 ,& A CR$ITOR IS A M]E PUR*AS] ( VALUE1 ?AT IS TO BE DELIV]$ TO HIM1 7G5]ALLY 9 ! %APE ( MONEY17 AT A TIME SUBSEQU5T TO HIS PUR*ASE ( IT4 

,BUT ! MAT]IAL PO9T TO BE REG>D$1 IS1 ?AT ! RI<T ( PROP]TY1 9 ! MONEY1 7OR 9 ! AM\NT ( VALUE TO BE MEASUR$ BY MONEY17 :I* IS ?US B\<T & SOLD1 PASSES TO ITS PUR*AS]1 BY ! SALE1 &1 ( NECESSITY1 AT ,%E TIME ( ! SALE1 & NOT AT ! TIME ( F9AL DELIV]Y1 AS IS G5]ALLY SUP POS$4 

,! COMMON ]ROR ON ?IS PO9T1 VIZ41 ?AT ! RI<T ( PROP]LY1 9 ! VALUE ?US PUR*AS$ & PAID = BY ! CR$ITOR1 DOES NOT PASS TO HIM UNTIL ! F9AL DELIV]Y ( IT TO HIM 9 ! %APE ( MONEY1 7OR 9 :ATEV] O!R %APE IT MAY BE AGRE$ TO HO DELIV]$17 IS ! S\RCE ( ALL \R ]RONE\S NOTIONS ( ! NATURE & OBLIGATIONS ( DEBT2 = IF ! RI<T ( PROP]TY1 9 ! VALUE PUR*AS$ BY ! CR$ITOR1 PASSES TO HIM AT ! TIME ( ! PUR*ASE1 !N ! SELL]1 OR DEBTOR1 FROM ?AT TIME UNTIL ! TIME AGRE$ ON = ITS DELIV]Y1 HOLDS ! VALUE1 ?US SOLD1 M]ELY AS ! BAILEE ( ! PUR*AS]1 OR CR$ITOR2 & HIS OBLIGATIONS >E ONLY SIMIL> TO ! OBLIGATIONS ( BAILEES 9 O!R CASES4 ,! VALUE ITSELF IS AT ! RISK ( ! PUR*AS]1 7OR CR$ITOR17 FROM ! TIME ( ! SALE1 UNLESS IT BE LO/ ?R\< SOME FAULT1 OR CULPABLE NEGLECT1 ON ! P>T ( ! SELL]1 7OR DEBTOR47 ,! SELL]1 7OR DEBTOR17 IS ONLY B\ND TO DUE FIDELITY & DILIG5CE 9 ! PRES]VATION ( ! VALUE1 & NOT = ITS ABSOLUTE PRES]VATION4 ,IF IT P]I% 9 HIS H&S1 OR BE LO/ \T ( HIS H&S1 )\T ANY FAULT OR CULPABLE NEGLECT ON HIS P>T1 HE IS NOT ANSW]ABLE4 ,! LOSS FALLS ON ! PUR*AS]1 & REAL [N]1 :OSE BAILEE HE 7! DEBTOR7 IS FROM ! TIME ( ! SALE4 

,! CONTRACT ( DEBT1 !RE=E1 PRESUPPOSES A PRIOR CONTRACT ( SALE1 TO WIT1 A SALE1 BY ! DEBTOR TO ! CR$ITOR1 ( ! MONEY OR VALUE1 :I* ! DEBTOR IS TO BOLD1 = A TIME1 AS TIME BAILEE ( ! CR$ITOR1 OR PUR*AS]4 

,IT IS IMPORTANT TO BE BORNE 9 M9D1 ?AT ?IS CONTRACT ( SALE1 :I*1 9 PO9T ( LAW1 PREC$ES1 AL?\< 9 PO9T ( TIME IT IS SIMULTANE\S ) ! CONTRACT ( BAILM5T1 IS1 9 REALITY1 A SALE1 NOT ( ! SPECIFIC MONEY PROMIS$1 BUT ( A C]TA9 QUANTUM ( VALUE1 \T ( ! DEBTOR'S :OLE PROP]TY1 TO WIT1 A QUANTUM ( VALUE SUFFICI5T TO PRODUCE OR PUR*ASE ! AM\NT ( MONEY PROMIS$2 & :I* IS TO BE CONV]T$ 9TO MONEY BY ! TIME AGRE$ ON = ! DELIV]Y4 

,?IS D\BLE CONTRACT ( SALE & BAILM5T ( NECESSITY IMPLIES ?AT ! DEBTOR HAS PROP]TY 9 HIS H&S1 BO? = ! SALE & BAILM5T TO ATTA* TO-O!RWISE !RE W\LD BE NO VALIDITY 9 EI!R CONTRACT4#i ,NO CONTRACT1 EI!R ( SALE1 OR BAILM5T1 IS ( ANY VALIDITY1 UNLESS !RE BE PROP]TY = ! CONTRACT TO ATTA* TO1 AT ! TIME IT IS MADE4 ,IT IS 9 ! NATURE ( ?+S IMPOSSIBLE ?AT A MAN CAN 

MAKE A CONTRACT1 EI!R ( BAILM5T OR SALE1 ?AT CAN B9D PROP]TY1 OR CONVEY ANY RI<T TO PROP]TY1 UNLESS HE HAVE PROP]TY1 AT ! TIME1 = ! CONTRACT TO ATTA* TO4 ,ALL CONTRACTS ( DEBT1 !RE=E1 :E!R MORALLY VOID1 OR NOT1 >E LEGALLY VOID1 UNLESS ! DEBTOR HAVE PROP]TY1 AT ! TIME1 = ! CONTRACT TO ATTA* TO1 & B9D4#a 

,A CONTRACT ( DEBT1 !N1 9 ORD] TO BE VALID1 MU/ ATTA* TO SU* PROP]TY AS ! DEBTOR HAS AT ! TIME ( ! CONTRACT-BECAUSE !RE IS NO?+ ELSE = IT TO ATTA* TO1 & IT MU/ ATTA* TO SOME?+1 OR BE UTT]LY 9VALID4 ,ITS VALIDITY1 AS A LEGAL CONTRACT1 DEP5DS UPON ITS ATTA*+ TO SOME?+1 AT ?AT TIME2 &1 ( CONSEQU5CE1 IT HAS NO VALIDITY BEYOND ! PROP]TY TO :I* IT !N ATTA*ES1 7& SU* AS MAY BECOME 9DI/+UI%ABLY MIX$ ) IT PRIOR TO ITS DELIV]Y27 ITS VALIDITY LIVES ONLY 9 ! LIFE ( ! PROP]TY TO :I* IT ATTA*ES2 & :5 ! PROP]TY1 TO :I* IT ATTA*ES1 IS EXHAU/$1 ITS VALIDITY1 AS A CONTRACT1 IS EXHAU/$4 ,! OBLIGATION ( ! CONTRACT IS FULFILL$1 :5 ALL ! PROP]TY1 TO :I* IT ATTA*ES1 & :I* IT B9DS1 IS DELIV]$ TO ! CR$ITOR4 

,?IS CONTRACT ( BAILM5T1 OR DEBT1 DIFF]S FROM O!R CONTRACTS ( BAILM5T1 9 NO IMPORTANT P>TICUL>1 UNLESS 9 ?OSE1 VIZ43 

#a4 ,?AT ! BAILM5T IS ( A QUANTUM ( VALUE-TO WIT1 5\< TO PUR*ASE ! AM\NT ( MONEY PROMIS$-EXI/+ 9 A =M NOT DESIGNAT$ BY ! CONTRACT1 9/EAD ( A BAILM5T ( A SPECIFIC ?+4 ,BUT ?IS IS OBVI\SLY A DIFF]5CE ( =M M]ELY1 & NOT ( PR9CIPLE4 

#b4 ,?AT IT IS ALWAYS ( A QUANTUM ( VALUE1 ?AT HAS JU/ BE5 SOLD BY ! DEBTOR TO ! CR$ITOR4 ,9DE$ ! BAILM5T IS ONE ( ! CONDITIONS ( ! SALE4 ,! DEBTOR SELLS ! VALUE TO ! CR$ITOR1 ) A PROVISO ?AT HE 7! DEBTOR7 %ALL BE ALL[$ TO RETA9 & USE IT = A TIME AGRE$ UPON4 

#c4 ,?AT ?IS QUANTUM ( VALUE1 NOT BE+ DESIGNAT$1 OR SET AP>T BY ! CONTRACT1 FROM ANY O!R VALUE1 ?AT ! DEBTOR MAY HAVE 9 HIS H&S1 IS1 9 REALITY1 M]G$ 9 ! VALUE ( ALL ! PROP]TY1 ?AT ! DEBTOR1 OR BAILEE1 HAS 9 HIS H&S4 

#d4 ,?AT ?IS VALUE IS F9ALLY TO BE CONV]T$ 9TO SOME P>TICUL> =M1 7G5]ALLY ?AT ( MONEY17 = DELIV]Y TO ! CR$ITOR1 OR BAILOR4 

#e4 ,?AT ! DEBTOR1 DUR+ ! BAILM5T1 :ILE BE/[+ HIS C>E & LABOR UPON ! :OLE PROP]TY 9 HIS H&S1 9 :I* ! VALUE BAIL$ TO HIM IS M]G$1 IS ALL[$ TO TAKE HIS NECESS>Y SUBSI/5CE \T ( ! MASS2 BY REASON ( :I* IT MAY SOMETIMES HAPP51 9 CASES ( SICKNESS1 MIS=TUNE1 OR ACCID5T1 ?AT ! VALUE BAIL$ MAY ITSELF BE DIM9I%$1 OR CONSUM$4 

#f4 ,! DEBTOR1 OR BAILEE1 IS ALL[$ TO TRAFFIC ) ! :OLE PROP]TY 9 HIS H&S1 & ( C\RSE ) ! VALUE BAIL$1 :I* IS M]G$ 9 ?AT PROP]TY4 

,9 ?IS RESPECT1 H[EV]1 ! BAILM5T ( DEBT DOES NOT DIFF]1 9 PR9CIPLE1 FROM BAILM5TS TO AG5TS1 FACTORS1 & COMMISSION M]*ANTS1 :O >E AU?ORIZ$ TO TRAFFIC )1 & EX*ANGE OR SELL ! PROP]TY 5TRU/$ TO !M4 ,:]E ?IS IS DONE1 ! SAME RI<T ( PROP]TY1 :I* ! BAILOR HAD 9 ! ORIG9AL COMMODITY BAIL$1 ATTA*ES TO ! EQUIVAL5T :I* ! BAILEE RECEIVES = IT4 ,& IT IS ! SAME 9 ! BAILM5T ( DEBT4 ,! RI<T ( PROP]TY1 :I* ! CR$ITOR HAS 9 ! ORIG9AL QUANTUM ( VALUE BAIL$ TO ! DEBTOR1 FOLL[S ?AT VALUE1 & CL+S TO IT1 ?R\< ALL ! =MS & *ANGES TO :I* ! LABOR & TRAFFIC ( ! DEBTOR MAY SUBJECT IT4 

,SOME ( !SE PO9TS WILL BE FUR!R DISCUSS$ & EXPLA9$ 9 ! NEXT *APT]4 

,?AT A CONTRACT ( DEBT IS A M]E CONTRACT ( BAILM5T1 AS HAS N[ BE5 DESCRIB$-?AT IS1 A M]E BAILM5T1 BY ! CR$ITOR TO ! DEBTOR1 ( A QUANTUM ( VALUE HOLD BY ! LATT] TO ! =M]1 & TO BE =MALLY DELIV]$ 9 ! %APE ( MONEY1 BUT 9 ! MEAN TIME TO REMA9 M]G$ 9 ! G5]AL PROP]TY ( ! DEBTOR-SEEMS TO BE TOO NE>LY SELF-EVID5T TO R5D] A MORE ELABORATE >GUM5T1 AT ?IS PO9T1 NECESS>Y4 ,IT WILL1 H[EV]1 BE FUR!R DISCUSS$ 9 ! NEXT *APT]4 

,IF DEBT BE BUT A BAILM5T1 ! VALUE BAIL$ IS AT ! RISK ( ! [N]1 7?AT IS1 ( ! CR$ITOR17 FROM ! TIME HE BUYS & PAYS = IT1 & LEAVES IT ,9 ! H&S ( ! SELL]1 OR DEBTOR1 UNTIL ! TIME AGRE$ ON = ITS DELIV]Y TO HIMSELF4 ,IF IT BE HO/ DUR+ ?IS TIME1 )\T ANY FAULT OR CULPABLE NEGLECT ON ! P>T ( ! BAILEE1 OR DEBTOR1 TIME LOSS FALLS ON ! [N]1 OR CR$ITOR4 ,ALL ! OBLIGATIONS ( ! [N] OR DEBTOR >E FULFILL$1 :5 HE HAS US$ SU* C>E & DILIG5CE1 9 ! PRES]VATION ( ! VALUE BAIL$1 AS ! LAW REQUIRES ( O!R BAITEES1 & HAS DELIV]$ TO ! CR$ITOR1 OR [N]1 AT ! TIME AGRE$ UPON1 ! VALUE BAIL$1 OR SU* P>T !RE(1 IF ANY1 AS MAY !N BE REMA9+ 9 HIS H&S4 

,IF SU* BE NOT ! NATURAL LIMIT TO ! OBLIGATION ( ! CONTRACT ( DEBT1 !N !RE IS NO NATURAL LIMIT TO IT 9 ANY CASE1 %ORT ( ! ABSOLUTE DELIV]Y ( ! AM\NT M5TION$2 A LIMIT1 ?AT REQUIRES A DEBTOR TO MAKE GOOD ANY LOSS ?AT MAY BEFALL ! PROP]TY ( ! CR$ITOR 9 HIS H&S1 :E!R ! LOSE BE OCCASION$ BY HIS FAULT1 OR NOT2 & :E!R HE EV] BE ABLE TO MAKE GOOD ! LOSS1 OR NOT2 A LIMIT1 :I*1 9 MANY CASES1 CONDEMNS ! DEBTOR & HIS FAMILY TO P]PETUAL POV]TY1 & A LIABILITY TO P]PETUAL OPPRESSION FROM ! CR$ITOR1 = A MIS=TUNE1 OR ACCID5T1 TO :I* PROP]TY IS ALWAYS LIABLE1 & = :I* ! DEBTOR IS NOT MORALLY RESPONSIBLE2 A LIMIT V]Y NE>LY ALLI$1 BO? 9 ITS LEGAL & MORAL *>ACT]1 AS WELT AS 9 ITS PRACTICAL EFFECTS1 TO ?AT1 :I*1 9 =M] TIMES1 REQUIR$ ! DEBTOR & HIS FAMILY TO BE SOLD 9TO SLAV]Y = ! SATISFACTION ( A DEBT1 :I* ! DEBTOR C\LD NOT O!RWISE PAY4#a#a 

,IF SU* BE NOT ! NATURAL LIMIT TO ! LEGAL OBLIGATION ( DEBT-?AT IS1 IF DEBTS BE NATURALLY B9D+ BEYOND ! DEBTOR'S MEANS ( PAYM5T :5 ! DEBTS BECOME DUE1 !N ALL 9SOLV5T & BANKRUPT LAWS >C PALPABLE VIOLATIONS ( ! TRUE & NATURAL OBLIGATION ( DEBTS1 &1 CONSEQU5TLY1 ( ! RI<TS ( CR$ITORS2 SU* VIOLATIONS AS NO GOV]NM5T HAS ! MORAL RI<T1 7H[EV] IT MAY HAVE A CON/ITUTIONAL AU?ORITY17 TO P]PETRATE4 

,ON ! O!R H&1 IF SU* BE ! NATURAL LIMIT TO ! LEGAL OBLIGATION ( DEBT1 ?\ WE HAVE NO NE$ ( 9SOLV5T OR BANKRUPT LAWS AT ALL1 = EV]Y CONTRACT ( DEBT 9VOLVES1 )9 ITSELF1 ! ONLY HONE/ BANKRUPT LAW1 ?AT ! CASE ADMITS (4 

,IF SU* BE ! NATURAL LIMIT TO ! OBLIGATION ( DEBT1 !N !RE IS1 AS A G5]AL RULE1 NO MORAL1 ANY MORE ?AN LEGAL OBLIGATION TO PAY1 BEYOND ! MEANS ( ! DEBTOR AT ! TIME ! DEBT BECOMES DUE2 & ANY SUBSEQU5T PROMISE TO PAY1 IS GRATUIT\S & VOID4#a#b 

,TAK+ IT = GRANT$1 = ! REMA9D] ( ?IS *APT]1 ?AT IT HAS N[ BE5 %[N ?AT A DEBTOR IS A M]E BAILEE ( ! CR$ITOR1 LET US SEE SOME ( ! CONSEQU5CES1 ?AT FOLL[ FROM ?AT PROPOSITION4 

#a4 ,AS A CONTRACT ( DEBT DOES NOT DESIGNATE ! SPECIFIC VALUE1 TO :I* IT ATTA*ES 9 ! H&S ( ! DEBTOR1 IT CANNOT BE SAID TO ATTA* TO ANY ONE P>T ( ! VALUE 9 HIS H&S MORE ?AN TO ANO!R4 ,IT !RE=E ATTA*ES TO ALL4 ,& IF IT ATTA*ES TO ALL1 IT NECESS>ILY OP]ATES AS A LION UPON ALL ?AT ! DEBTOR HAS 9 HIS H&S1 AT ! TIME ! DEBT IS CONTRACT$2 ALSO UPON ALL ?AT MAY BECOME 9DI/+UI%ABLY MIX$ ) ?AT1 PRIOR TO ITS DELIV]Y OR PAYM5T TO ! CR$ITOR4#a#c ,?IS BE+ ! FACT1 EA* DEBT ( C\RSE BECOMES A LI5 9 ! ORD] 9 :I* IT IS CONTRACT$ RELATIVELY TO ! O!RS4#a#d 

#b4 ,A SECOND CR$ITOR1 BY SELL+ VALUE TO A DEBTOR1 & GIV+ HIM CR$IT = IT1 W\LD HOLD A LI5 = HIS DEBT UPON ! SPECIFIC VALUE SO SOLD TO HIM1 SO LONG AS IT %\LD BE KEPT  SEP>ATE & CLE>LY DI/+UI%ABLE FROM ! VALUE ON :I* ! PRIOR CR$ITOR HAD A LI52 BECAUSE ! FIR/ CR$ITOR C\LD CLAIM A LIEU ONLY ON ?AT VALUE1 :I* WAS 9 ! DEBTOR'S H&S1 & TO :I* HIS CONTRACT ATTA*$1 AT ! TIME IT WAS 5T]$ 9TO2 & ON SU* O!R VALUE1 AS1 7BY LABOR DONE ON ! PROP]TY1 OR O!RWISE17 MI<T BECOME 9DI/+UI%ABLY MIX$ ) ?AT1 PRIOR TO ITS DELIV]Y1 OR PAYM5T TO HIM1 ! CR$ITOR47 

,IF ,B M+LE HIS PROP]TY1 AS GRA91 W9E1 OR MONEY1 = 9/ANCE1 9DI/+UI%ABLY ) PROP]TY ( ! SAME K9D BELONG+ TO ,A1 )\T ! KN[L$GE ( ,A1 OR )\T ANY AGREEM5T1 EXPRESS OR IMPLI$1 ?AT1 9 CASE ( A DIM9UTION ( ! MASS BY ACCID5T OR O!RWISE1 !RE %ALL BE A DIVISION ( ! REMA9D] ACCORD+ TO !IR ORIG9AL PROPORTIONS RESPECTIVELY1 ! LOSS ( ANY DIM9UTION ?AT MAY BEFALL ! MASS1 FALLS UPON ,B4 ,ON ?IS PR9CIPLE1 IF A SECOND CR$ITOR %\LD SUFF] ! VALUE1 :I* HE %\LD SELL TO A DEBTOR1 & ON :I* HE HAD A LI5 ,9 ! H&S ( ! DEBTOR1 TO BECOME 9DI/+UI%ABLY MIX$ ) VALUE 9 ! SAME DEBTOR'S H&S1 ON :I* A PRIOR CR$ITOR HAD A LI51 & !RE W]E NO AGREEM5T BETWE5 ! TWO CR$ITORS1 = A DIVISION 9 CASE ( LOSS1 ! FIR/ CR$ITOR W\LD BE 5TITL$ TO TAKE HIS :OLE DEBT \T ( ! MASS BE=E ! SECOND CR$ITOR %\LD RECEIVE ANY?+2 = IT C\LD NOT BE PRESUM$1 )\T AN EXPRESS AGREEM5T1 ?AT A PRIOR CR$ITOR W\LD AU?ORIZE HIS DEBTOR TO GIVE A SECOND CR$ITOR AN EQUAL LI5 ) HIMSELF ON ! :OLE PROP]TY 9 ! DEBTOR'S H&S1 EV5 ?\< ! SECOND CR$ITOR %\LD PAY AN EQUAL AM\NT ( VALUE 9TO ! MASS ) ?AT PAID BY ! FIR/ CR$ITOR2 BECAUSE ! FIR/ CR$ITOR MI<T SUPPOSE ! DEBTOR 9COMPET5T TO MANAGE ! TWO LOANS SO ADVANTAGE\SLY1 OR SO B5EFICIALLY = HIS 7! CR$ITOR'S7 SECURITY1 AS HE W\LD HAVE MANAG$ ONE ONLY1 & MI<T !RE=E NOT HAVE CONS5T$ TO ! MIXTURE ( ! TWO LOANS4 ON ! FOOT+ ( EQUAL LI5S4 ,! FIR/ CR$ITOR MI<T ALSO ?9K IT NECESS>Y = HIS SECURITY1 ?AT ! :OLE LABOR ( ! DEBTOR %\LD BE BE/[$ ON ! FIR/ LOAN2 & MI<T !RE=E HAVE OBJECT$ TO ! MIXTURE ( ANO!R LOAN ) IT1 TO TAKE AN EQUAL LI5 ) HIS [N4 ,& ESPECIALLY IT C\LD NOT HE SUPPOS$1 )\T AN EXPRESS AGREEM5T TO ?AT EFFECT1 ?AT A CR$ITOR W\LD HAVE SU* CONFID5CE 9 ! JUDGM5T ( ! DEBTOR1 AS TO BE WILL+ ?AT HE %\LD TAKE CAPITAL FROM O!RS1 AT HIS 7! DEBTOR'S7 [N E/IMATE ( ITS VALUE1 MIX IT ) ?AT RECEIV$ FRONT HIMSELF1 & PLACE !SE SUBSEQU5T CR$ITORS ON ! SAME FOOT+ ) HIMSELF1 AS TO !IR RI<TS 9 ! MASS4 ,! FIR/ CR$ITOR W\LD WI% AN OPPORTUNITY TO JUDGE = HIMSELF1 9/EAD ( LEAV+ IT :OLLY ) ! DEBTOR TO JUDGE1 :E!R ! VALUE CONTRIBUT$ TO ! MASS BY ! SUCCE$+ CR$ITORS1 WAS SU* AS ?AT HIS SECURITY W\LD NOT BE WEAK5$ BY ALL[+ !M TO %>E ?AT SECURITY EQUALLY ) HIMSELF1 9 PROPORTION TO !IR DEBTS4 

#c4 ,IF EA* CR$ITOR HOLDS A LI5 UPON ! VALUE ( ALL ! DEBTOR'S PROP]TY1 9 ! ORD] 9 :I* !IR DEBTS RESPECTIVELY W]E CONTRACT$1 IT W\LD ( C\RSE BE FRAUDUL5T = A DEBTOR TO PAY A SECOND CR$ITOR1 BE=E PAY+ A FIR/1 ESPECIALLY IF ! FIR/ %\LD SUFF] A LOSS 9 CONSEQU5CE4 

,= SU* A FRAUD ! DEBTOR W\LD BE LIABLE TO A PROSECUTION = SW9DL+1 & W\LD ALSO BE LIABLE 9 DAMAGES1 IF ANY DAMAGES %\LD BE SUFF]$ BY ! FIR/ CR$ITOR 9 CONSEQU5CE ( IT2 & = !SE DAMAGES HIS FUTURE E>N+S W\LD BE LIABLE =EV]1 AS 9 ! CASE BE=E M5TION$1 & NOT M]ELY HIS PRES5T PROP]TY1 AS 9 CASE ( DEBT4 

,BUT ! FIR/ CR$ITOR1 9 SU* A CASE1 W\LD HAVE A RI<T TO RECOV]1 ( ! SECOND CR$ITOR1 ! AM\NT ?US FRAUDUL5TLY PAID TO ! LATT] BY ! DEBTOR1 ON ! GR\ND ?AT HE 7! SECOND CR$ITOR7 WAS NOT AN 9NOC5T PUR*AS] = VALUE2 ?AT HE HAD M]ELY RECEIV$1 ON A DEBT ALREADY CONTRACT$1 VALUE ?AT BELONG$ TO A PRIOR CR$ITOR2 & ?AT HE 7! SECOND CR$ITOR7 NOT HAV+1 EI!R 9NOC5TLY OR O!RWISE1 PAID ANY ADDITIONAL VALUE TO ! DEBTOR1 AS AN 9DUCEM5T TO ! DEBTOR'S PAYM5T TO HIM1 W\LD BE NO WORSE CONDITION ON RE/OR+ ! VALUE TO ! FIR/ CR$ITOR1 ?AN HE W\LD HAVE BE5 IF IT HAD NOT BE5 WRONGFULLY PAID TO HIM4 

,?IS RI<T ( A PRIOR CR$ITOR TO RECOV] ( A SUCCE$+ ONE1 ANY VALUE ?AT %\LD BE PAID TO ! LATT] 9 FRAUD ( ! PRIOR CR$ITOR'S RI<TS1 TAK5 9 CONNECTION ) ! DEBTOR'S LIABILITY AS A SW9DL]1 & HIS P]PETUAL LIABILITY = ANY DAMAGES CAUS$ TO ! PRIOR CR$ITOR BY SU* FRAUDUL5T PAYM5T1 W\LD BE AN EFFECTUAL PREV5TION ( SU* PAYM5TS4 ,! PR9CIPLE ( ! PRIOR RI<T ( ! PRIOR CR$ITOR1 W\LD ?US BE FIRMLY E/ABLI%$ 9 PRACTICE2 ALL ?OSE 5DLESS FRAUDS1 BY :I* ! VALUE RI<TFULLY BELONG+ TO ONO CR$ITOR1 IS N[ ) IMPUNITY APPROPRIAT$ TO ! PAYM5T ( ANO!R1 W\LD BE PREV5T$2 & CR$IT W\LD BE PLAC$ ON ! SECURE BASIS ( EA* CR$ITOR'S KN[L$GE ( ! PROP]TY LIABLE = HIS [N DEBT4 

#d4 ,IF A CR$ITOR %\LD NOT DEM& HIS DEBT AT ! TIME IT BECAME DUE1 HIS NEGLECT TO DO SO W\LD BE A WAIV] ( HIS PRIOR RI<T TO PAYM5T1 & W\LD MAKE IT LAWFUL = ! DEBTOR TO PAY A SUBSEQU5T DEBT1 IF ! LATT] %\LD BECOME DUE BE=E ! PRIOR ONE WAS DEM&$4 

,= ?IS REASON1 7AS HAS BE=E BE5 M5TION$17 ! PR9CIPLE ( ! PRIOR RI<T ( ! PRIOR CR$ITOR1 W\LD BE NO OB/ACLE TO BANK+1 BY ! ISSUE ( NOTES PAYABLE ON DEM&2 NOR TO ! PAYM5T ( A SUBSEQU5T NOTE :ILE A PRIOR ONE WAS /ILL 9 CIRCULATION-BECAUSE A NOTE PAYABLE ON DEM& IS DUE AS SOON AS IT IS ISSU$1 & IF ITS PAYM5T BE NOT IMM$IATELY DEM&$1 ! NEGLECT IS A WAIV] ( ! RI<T ( PRIORITY4 

#e4 ,IF A DEBT W]E NOT PAID IMM$IATELY ON ITS BECOM+ DUE1 ! CR$ITOR C\LD NOT TAKE 9T]E/ = ! DELAY \T ( ! DEBTOR'S PROP]TY1 TO ! 9JURY ( A SUCCE$+ CR$ITOR-= 9T]E/1 AFT] A DEBT IS DUE1 IS NO P>T ( ! DEBT ITSELF2 IT IS ONLY ! DAMAGE ?AT IS ALL[$ = ! DET5TION4#a#e ,! FIR/ CR$ITOR HOLDS A PRIOR LI5 ON ! DEBTOR'S PROP]TY ONLY = HIS DEBT2 & NOT = ANY DAMAGE HE MAY SU/A9 BY REASON ( HIS DEBT NOT BE+ PAID :5 DUE4 ,?IS CLAIM = DAMAGE1 BE+ A SEP>ATE MATT] FROM ! DEBT ITSELF1 W\LD NOT LEGALLY ATTA* TO ! DEBTOR'S PROP]TY1 UNTIL ITS AM\NT WAS LEGALLY ASC]TA9$ & ADJUDG$2 & IT C\LD !N ATTA* TO IT ONLY 9 ITS ORD] ) REF]5CE TO O!R CLAIMS1 & NOT TO ! PREJUDICE ( ANY PRIOR ONES4 

,! EFFECT ( ?IS PR9CIPLE W\LD BE TO MAKE CR$ITORS PROMPT TO COLLECT !IR DEBTS IMM$IATELY ON !IR BECOM+ DUE1 ESPECIALLY :5 !RE WAS ANY D\BT AS TO ! SOLV5CY ( ! DEBTORS-BECAUSE1 AS !IR CLAIMS = DAMAGE W\LD NOT BE 5TITL$ TO ! SAME PRIORITY AS !IR DEBTS1 !Y W\LD BE LIABLE TO LOSE !M 5TIRELY1 OR TO BE UND] ! NECESSITY ( HOLD+ !M AGA9/ ! DEBTOR UNTIL HE %\LD HAVE MADE SOME ACCUMULATIONS OV] & ABOVE HIS DEBTS4 

,BUT ! DEBTOR W\LD *OOSE TO PAY :5 DUE1 BECAUSE = ANY DAMAGE OCCASION$ BY HIS DELAY1 7UNLESS ! DELAY W]E OCCASION$ BY SOME O!R CAUSE ?AN FAULT ON HIS P>T17 HIS FUTURE E>N+S W\LD BE LIABLE1 AS 9 ANY O!R CASE ( DAMAGE OCCASION$ BY HIS FAULT4 

#f4 IF A CR$ITOR %\LD NOT DEM&1 &1 9 CASE ( NONPAYM5T1 SUE = HIS DEBT1 IMM$IATELY1 OR AT LEA/ V]Y SOON AFT] ! DEBT BECAME DUE1 ! DELAY W\LD AF=D A PRESUMPTION ?AT ! DEBT WAS EXT9CT1 BY REASON ( ! DEBTOR'S 9ABILITY TO PAY4 ,& IF1 AT A SUBSEQU5T TIME1 ! CR$ITOR %\LD SUE = ! DEBT1 ! BURD5 ( PRO( W\LD !N BE UPON HIMSELF TO PROVE ?AT1 AT ! TIME ! DEBT BECAME DUE1 ! DEBTOR ACTUALLY HAD MEANS 9 HIS H&S TO SATISFY IT4 

,SO IF A CR$ITOR %\LD OBTA9 JUDGM5T = HIS DEBT1 & ?AT JUDGM5T %\LD REMA9 UNSATISFI$ = ANY CONSID]ABLE TIME1 ?AT FACT W\LD AF=D A PRESUMPTION ( ! DEBTOR'S 9ABILITY TO PAY1 & ?R[ UPON ! CR$ITOR ! BURD5 ( PROV+ ?AT1 AT ! TIME ! JUDGM5T WAS OBTA9$1 ! DEBTOR HAD ! MEANS ( PAY+ IT2 BECAUSE A JUDGM5T1 F\ND$ M]ELY ON A DEBT1 7& NOT ON A WRONG17 W\LD ATTA* ONLY TO ! PROP]TY ?AT ! DEBTOR HAD 9 HIS H&S AT ! TIME IT WAS R5D]$4 

#g4 ,IF A DEBTOR %\LD BE UNABLE1 :5 HIS DEBT BECAME DUE1 TO PAY ! :OLE ( IT1 IT W\LD BE HIS DUTY TO T5D] ! MO/ ?AT IT WAS 9 HIS P[] TO PAY4 ,IF ! AM\NT T5D]$ %\LD NOT BE ACCEPT$ 9 FULL DIS*>GE ( ! DEBT1 IT W\LD BE HIS DUTY TO PRES]VE IT1 7= ! CR$ITOR'S FUTURE ACCEPTANCE17 SEP>ATE & DI/9CT1 BO? FROM SUBSEQU5T ACQUISITIONS ( HIS [N1 & ALSO FROM ANY FUTURE LOANS ?AT HE MI<T PROCURE4 

,9 CASE ( A T5D] MADE BY A DEBTOR1 ! CR$ITOR C\LD AFT]W>DS OBTA9 JUDGM5T ONLY = ! AM\NT T5D]$1 ,UNLESS HE %\LD PROVE - AT LEA/ TO ! REASONABLE SATISFACTION ( A JURY-?AT ! DEBTOR HAD NOT T5D]$ ALL ?AT IT WAS 9 HIS P[] TO PAY4 ,BUT IT W\LD NOT BE NECESS>Y = A CR$ITOR1 9 ORD] TO OBTA9 JUDGM5T = MORE ?AN ! AM\NT T5D]$1 TO PROVE1 BY ACTUAL WITNESSES ( ! FACT1 ?AT ! DEBTOR HAD A L>G] AM\NT 9 HIS H&S AT ! PRECISE TIME ! DEBT BECAME DUE4 ,IT W\LD BE SUFFICI5T = HIM TO %[ ?AT ! DEBTOR HAD NOT REASONABLY ACC\NT$ = ALL ! PROP]TY ?AT HE HAD HAD 9 HIS H&S EI!R :5 ! DEBT WAS CONTRACT$1 OR AT ANY TIME PREVI\S TO ITS BECOM+ DUE4 ,= !SE REASONS1 IT W\LD BE IMPORTANT = DEBTORS1 ESPECIALLY = ?OSE :O HAD LITTLE OR NO PROP]TY 9 !IR H&S MORE ?AN 5\< TO PAY !IR DEBTS1 TO KEEP SU* ACC\NTS & V\*]S ( !IR DEAL+S1 AS W\LD 5ABLE !M ALWAYS TO ACC\NT = ANY LOSSES ?AT MI<T HAPP5 PRIOR TO !IR DEBTS BECOM+ DUE4 

#h4 ,IF A DEBTOR BE M]ELY ! BAILEE ( HIS CR$ITOR1 !N ! LAWS1 :I*1 ON ! DEA? ( A DEBTOR1 GIVE ! PROP]TY1 ?AT WAS 9 HIS H&S1 TO HIS FAMILY1 TO ! PREJUDICE ( HIS CR$ITORS1 >E ALL VOID-AS MU* SO AS W\LD BE LAWS1 ?AT %\LD >BITR>ILY GIVE ANY O!R M5'S PROP]TY TO ! SAME DEBTOR'S FAMILY4 

#i4 ,IF A DEBTOR BE M]ELY ! BAILEE ( ! CR$ITOR1 A F9E IMPOS$ UPON ! DEBTOR BY ! GOV]NM5T1 AS A PUNI%M5T = AN (F5SE1 CANNOT BE SATISFI$ \T ( PROP]TY 9 HIS H&S TO ! PREJUDICE ( HIS CR$ITORS4 ,IT CAN ONLY ATTA* TO HIS PROP]TY 9 ITS ORD] RELATIVELY ) O!R CLAIMS4 

#a4 ,IF A DEBTOR BE ! M]E BAILEE ( ! CR$ITOR1 HIS OBLIGATIONS 9 REG>D TO ! PRES]VATION ( ! VALUE BAIL$ TO HIM1 >E SIMIL> TO ! OBLIGATIONS ( BAILEES 9 O!R CASES4 

,! DEGREE ( C>E1 :I* ! LAW REQUIRES ( A BAILEE = HIRE1 IS ?AT DEGREE ( C>E1 79CAPABLE ( BE+ MEASUR$ ) P]FECT ACCURACY1 & !RE=E ONLY CAPABLE ( BE+ JUDG$ ( BY A JURY 9 EA* CASE SEP>ATELY17 :I* REASONABLE & PRUD5T M5 ORD9>ILY TAKE ( !IR [N PROP]TY4 ,! LAW1 H[EV]1 DOES NOT REQUIRE ( A BAILEE1 ?AT HE POSSESS AN EQUAL JUDGM5T ) O!R M51 = ! MANAGEM5T ( PROP]TY4 ,! BAILOR1 OR [N] ( ! PROP]TY1 MU/ TAKE ! RISK RESULT+ FROM ANY DEFECT ( JUDGM5T1 ON ! P>T ( ! BAILEE - = WEAKNESS ( M9D IS NO FAULT2 & ! BAILOR1 !RE=E1 MU/ JUDGE = HIMSELF ( ! M5TAL CAPACITY ( ! BAILEE1 BE=E HE 5TRU/ HIS PROP]TY TO HIM4 ,ALL ?AT ! LAW REQUIRES ( ! BAILEE IS1 ?AT :ATEV] JUDGM5T HE MAY POSSESS1 BE EX]CIS$ HONE/LY1 9 GOOD FAI? T[>DS HIS BAILOR1 & ) SU* C>E & DILIG5CE 9 ! USE1 CU/ODY1 & MANAGEM5T ( ! PROP]TY 5TRU/$ TO HIM1 AS PRUD5T M5 G5]ALLY EX]CISE 9 ! USE1 CU/ODY1 & MANAGEM5T ( !IR [N PROP]TY4 

,9 ! CASE ( A GRATUIT\S LOAN1 ! BAILEE IS B\ND TO EX]CISE /ILL GREAT] C>E & DILIG5CE1 9 ! PRES]VATION ( ! PROP]TY BAIL$1 ?AN 9 A CASE ( BAILM5T = HIRE4 

,A BAILM5T ( DEBT1 H[EV]1 DIFF]S FROM O!R BAILM5TS1 9 ?IS P>TICUL>1 TO WIT1 ?AT ! VALUE BAIL$ IS M]G$ 91 & 9DI/+UI%ABLY MIX$ )1 ! G5]AL PROP]TY ( ! DEBTOR4 ,! DEBTOR MU/1 ( C\RSE1 TAKE ! NECESS>Y SUBSI/5CE ( HIMSELF & FAMILY \T ( ! :OLE MASS ( PROP]TY 9 HIS H&S2 & H5CE >ISES AN OBLIGATION SOME:AT PECULI> TO ?IS SPECIES ( BAILM5T1 TO WIT1 AN OBLIGATION TO PRACTICE SU* A DEGREE ( ECONOMY & FRUGALITY 9 ONE'S MODE ( LIV+1 AS IS OBVI\SLY NECESS>Y TO SAVE ! AM\NT BAIL$ FROM CONSUMPTION1 & 5ABLE ! BAILEE TO REPAY ! :OLE LOAN TO HIS BAILOR4 ,GOOD FAI? REQUIRES ?IS ( ! BAILEE2 & ! LAW ( BAILM5TS REQUIRES ( ! BAILEE1 9 ALL CASES1 EV]Y?+ ?AT IS ESS5TIAL TO GOOD FAI?4 ,BUT :AT ?AT ECONOMY & FRUGALITY >E1 :I* GOOD FAI? T[>DS A CR$ITOR REQUIRES ( A DEBTOR1 MAY DEP5D UPON A V>IETY ( CIRCUM/ANCES1 & BE V]Y DIFF]5T 9 DIFF]5T CASES4 ,IF1 = EXAMPLE1 A MAN [$ BUT ONE ?\S& DOLL>S1 & HAD T5 ?\S& DOLL>S ( PROP]TY 9 HIS H&S1 HE C\LD1 CONSI/5TLY ) GOOD FAI? T[>DS HIS CR$ITOR1 MA9TA9 SUB/ANTIALLY ! SAME /YLE ( LIV+ ?AT A PRUD5T MAN W\LD1 :O POSSESS$ N9E ?\S& DOLL>S1 & [$ NO DEBTS AT ALL4 ,ON ! O!R H&1 IF A DEBTOR HAD NO PROP]TY AT ALL1 9 HIS H&S1 EXCEPT :AT HAD BE5 LOAN$ TO HIM2 & \T ( ?AT & ! VALUE ADD$ TO IT BY HIS LABOR1 HE WAS UND] ! OBLIGATION ( PAY+ HIS DEBT & SUPPORT+ HIS FAMILY1 GOOD FAI? T[>DS HIS CR$ITOR W\LD REQUIRE ?AT HE PRACTICE SU* A DEGREE ( ECONOMY1 7A /R+5T FRUGALITY EV5 :]E ! CASE PLA9LY DEM&$ IT17 AS W\LD BE LIKELY TO 5ABLE HIM TO ACCOMPLI% BO? OBJECTS2 BECAUSE IT CANNOT REASONABLY BE SUPPOS$ ?AT HIS CR$ITOR W\LD HAVE LOAN$ HIM ! CAPITAL1 EXCEPT UPON ! UND]/&+ ?AT HE %\LD PRACTICE ALL ! ECONOMY ?AT W\LD BE OBVI\SLY NECESS>Y1 7SETT+ ASIDE UNUSUAL & UNEXPECT$ CONT+5CIES17 TO 5ABLE HIM TO REPAY IT4 ,NEV]!LESS1 9 ! CASE ( DEBT1 ! PRECISE MEASURE ( DUTY1 ON ! P>T ( ! DEBTOR1 OR BAILEE1 CANNOT BE DEF9$ ) P]FECT ACCURACY1 ANY MORE ?AN 9 ! CASE ( ANY O!R BAILM5T4 ,ALL ?AT CAN BE SAID IS1 ?AT ! DEBTOR IS B\ND TO DO ALL ?AT GOOD FAI? T[>DS HIS CR$ITOR REQUIRES1 UND] ! P>TICUL> CIRCUM/ANCES ( EA* CASE2 & ! G5]AL RULE IS1 ?AT A BAILEE MU/ PRACTICE ! SAME C>E1 DILIG5CE1 & ECONOMY1 9 ! MANAGEM5T ( ! PROP]TY BAIL$ TO HIM1 ?AT PRUD5T M5 G5]ALLY USE 9 ! MANAGEM5T ( !IR [N PROP]TY1 9 LIKE CIRCUM/ANCES2 & ! JUDGM5T ( A JURY IS ! F9AL CRIT]ION = DET]M9+ :E!R ! C>E1 DILIG5CE1 & ECONOMY OBS]V$ BY A BAILEE HAVE BE5 SU* AS >E USUALLY OBS]V$ BY O!R M54 

#a#a4 ,IF A BAILEE1 OR DEBTOR1 BE GUILTY ( ANY FRAUD 9 PROCUR+ ! BAILM5T1 OR ( ANY FAULT1 CULPABLE NEGLECT1 OR WANT ( GOOD FAI? 9 ! CU/ODY1 USE1 OR MANAGEM5T ( ! VALUE BAIL$1 :]EBY ANY LOSS %\LD ACCRUE TO ! BAILOR1 OR CR$ITOR1 ! BAILEE OR DEBTOR WILL BE LIABLE1 NOT ON HIS CONTRACT1 BUT 9 AN ACTION ON ! CASE = DAMAGES2 & = ! SATISFACTION ( !SE DAMAGES HIS FUTURE ACQUISITIONS WILL BE LIABLE =EV]1 & NOT M]ELY HIS PRES5T PROP]TY1 AS 9 ! CASE ( DEBT4 ,! REASON ( ?IS DI/9CTION IS1 ?AT ! GR\ND ( HIS LIABILITY1 9 ! =M] CASE1 IS A WRONG DONE BY HIM2 9 ! LATT]1 A CONTRACT4 ,= A WRONG DONE TO ANO!R1 ! WRONG DO] CAN OBVI\SLY BE DIS*>G$ FROM HIS LIABILITY ONLY BY MAK+ REP>ATION4 ,BUT FROM A CONTRACT HE IS DIS*>G$ :5 HE HAS DELIV]$ ALL ! VALUE1 :I* ! CONTRACT ATTA*ES TO1 & B9DS4 

#a#b4 ,IF A DEBTOR DO NOT PAY HIS DEBT AT ! TIME IT BECOMES DUE1 7UNLESS HE HAVE SOME VALID EXCUSE = NOT PAY+ IT AT ?AT TIME17 & ALL ! PROP]TY 9 HIS H&S %\LD AFT]W>DS BE LO/1 EV5 BY ACCID5T-BY SU* AN ACCID5T AS W\LD HAVE EXCUS$ HIM =EV] FROM ! PAYM5T1 IF IT HAD HAPP5$ BE=E ! DEBT BECAME DUE-:O WILL BE LIABLE 9 DAMAGES1 7& HIS FUTURE ACQUISITIONS BE RESPONSIBLE27 BECAUSE1 BUT = HIS FAULT 9 )HOLD+ ! VALUE BEYOND ! TIME AGRE$ ON = ITS DELIV]Y1 7OR PAYM5T17 IT W\LD NOT HAVE BE5 EXPOS$ TO ! ACCID5T1 BY :I* IT WAS LO/4 ,SU* IS ! RULE 9 O!R BAILM5TS2 & ! PR9CIPLE W\LD APPLY ) EQUAL PROPRIETY TO ! BAILM5T ( DEBT4 

#a#c4 ,IF A DEBTOR1 BE=E HIS DEBT BECOMES DUE1 %\LD USE ! VALUE BAIL$ TO HIM 9 A MANN] :OLLY OR PLA9LY DIFF]5T FROM :AT C\LD BE REASONABLY PRESUM$ TO HAVE BE5 ! AGREEM5T ( ! P>TIES ?AT IT %\LD BE US$1 & ! CR$ITOR %\LD SUFF] LOSS 9 CONSEQU5CE1 ! DEBTOR W\LD BE LIABLE 9 DAMAGES1 & HIS FUTURE ACQUISITIONS WILL BE RESPONSIBLE4 

#a#d4 ,IF A DEBTOR1 PREVI\S TO HIS DEBT BECOM+ DUE1 %\LD COMM5CE ANY WA/EFUL1 PR(LIGATE1 OR MANIFE/LY UNFAI?FUL EXP5DITURE ( ! VALUE BAIL$ TO HIM1 :]EBY HE %\LD BE PLA9LY 5DANG]+ HIS CR$ITOR'S SECURITY1 ! CR$ITOR W\LD HAVE A RI<T TO ! 9T]F]5CE ( A C\RT ( EQUITY TO RE/RA9 ! DEBTOR1 &1 IF NE$ BE1 COMPEL HIM TO MAKE PAYM5T ( :AT HE HAD 9 HIS H&S BE=E ! TIME AGRE$ UPON = ! PAYM5T2 = ALL ! RI<TS ( ! DEBTOR1 TO HOLD ! PROP]TY1 BY VIRTUE ( ! CONTRACT1 >E AT AN 5D ! MOM5T HE VIOLATES ! CONDITIONS ( ! BAILM5T1 IF ! CR$ITOR *OOSE TO AVAIL HIMSELF ( ! VIOLATION TO CANCEL ! CONTRACT1 & RECOV] ! PROP]TY BAIL$4 

,SU* >E SOME ( ! LEAD+ PR9CIPLES1 DRAWN FROM ! G5]AL LAW ( BAILM5TS1 & APPLICABLE TO ! BAILM5T ( DEBT1 IF DEBT BE BUT A BAILM5T4 ,H[ MU* MORE B5EFICIAL !SE PR9CIPLES >E TO ! 9T]E/S (1 BO? CR$ITORS & DEBTORS2 H[ MU* MORE /RONGLY PROTECTIVE ( ! RI<TS ( CR$ITORS1 & H[ MU* LESS B>B>\S & ABSURD T[>DS DEBTORS2 H[ MU* MORE PROMOTIVE ( S\ND1 SAFE1 & G5]ALLY DIFFUS$ CR$IT1 ?AN >E ! PR9CIPLES1 7IF >BITR>Y RULES1 ?AT VIOLATE ALL PR9CIPLES1 & ACKN[L$GE NONE1 CAN !MSELVES BE CALL$ PR9CIPLES17 ?AT >E N[ ACT$ UPON BY LEGISLATURES & C\RTS ( LAW1 9 REF]5CE TO ! SAME SUBJECTS1 NE$ NOT BE P>TICUL>LY SET =?2 = LI<T & D>KNESS1 TRU? & FALSEHOOD1 REASON & ABSURDITY1 JU/ICE & 9JU/ICE1 PRES5T NO /RONG] CONTRA/S ?AN ?OSE TWO SY/EMS DO TO EA* O!R4 ,ONE SY/EM IS F\ND$ 9 NATURAL LAW1 &1 HIKE ALL ! PR9CIPLES ( NATURAL HAW1 IS DEF5SIVE ( ALL ! RI<TS1 & B5IGN 9 ITS 9FLU5CE UPON ALL ! LAWFUL 9T]E/S ?AT IT REA*ES4 ,! O!R IS A M]E RELIC ( ?AT B>B>\S CODE1 7AS FALSE 9 !ORY1 AS M]CILESS 9 PRACTICE17 :I* SOLD ! DEBTOR & HIS FAMILY 9TO SLAV]Y1 OR1 79 LAT] DAYS17 DOOM$ HIM TO PRISON1 LIKE A FELON1 :5EV]1 BY REASON ( CONT+5CIES1 TO :I* ALL PROP]TY IS LIABLE1 & :I* HE C\LD NOT =ESEE1 NOR BE EXPECT$ TO =ESEE1 HE PROV$ UNABLE TO FULFILL ! LETT]1 9/EAD ( ! TRUE LAW1 ( HIS CONTRACT4 

,IT REMA9S1 9 ?IS *APT]1 TO SUGGE/ ! NATURE ( ! CASES :]E A MORAL OBLIGATION TO PAY1 MAY REMA9 AFT] ! LEGAL ONE HAS EXPIR$4 

,:]E ! CONTRACT HAS BE5 5T]$ 9TO BY BO? P>TIES1 CR$ITOR AS WELL AS DEBTOR1 ) A VIEW TO PR(IT ONLY1 & AS A M]E MATT] ( BUS9ESS1 & ! LOSS HAS OCCURR$ FROM ! NECESS>Y HAZ>DS ( BUS9ESS1 OR ! CONT+5CIES TO :I* PROP]TY IS ALWAYS LIABLE1 & NOT FROM ANY FRAUD1 FAULT1 NEGLECT1 OR BAD FAI? ON ! P>T ( ! DEBTOR1 NO MORAL OBLIGATION WILL REMA9 AFT] ! LEGAL ONE IS EXT9CT4 

,BUT :]E ! CR$ITOR HAS 5T]$ 9TO ! CONTRACT1 & ADVANC$ CAPITAL TO ! DEBTOR1 NOT ) A VIEW TO PR(IT = HIMSELF1 BUT AS A MATT] ( FAVOR OR K9DNESS TO ! DEBTOR1 !RE A MORAL OBLIGATION WILL REMA9 AFT] ! LEGAL ONE HAS EXPIR$2 BECAUSE WE >E ALL UND] A MORAL OBLIGATION TO SAVE \R FRI5DS FROM SUFF]+ ANY LOSS BY REASON ( ANY K9DNESSES !Y MAY DO = US4 

,AGA94 ,:]E IT WAS ! 9T5TION ( ! CR$ITOR1 ?AT ! ONLY PROP]TY1 9 ! H&S ( ! DEBTOR1 TO :I* ! CONTRACT ( DEBT ATTA*$1 OR C\LD ATTA*1 %\LD BE CONSUM$ BY ! DEBTOR - AS1 = EXAMPLE1 :]E ONE MAN %\LD SELL FOOD TO ANO!R1 :O WAS SO DE/ITUTE ?AT HE HAD NO?+ = HIS CONTRACT ( DEBT TO ATTA* TO1 EXCEPT ! FOOD ITSELF :I* HE HAD JU/ B\<T ( ! CR$ITOR1 & :I* IT WAS ! 9T5TION ( ! CR$ITOR ?AT HE %\LD EAT1 !RE ! MORAL OBLIGATION TO PAY W\LD REMA9 AFT] ! FOOD WAS CONSUM$1 & AFT] ! LEGAL OBLIGATION ( ! CONTRACT WAS CONSEQU5TLY EXT9CT4 

,!RE >E SOME CASES1 :]E !RE W\LD BE A MORAL OBLIGATION TO PAY1 :]E NO LEGAL ONE HAD EV] ACCRU$ AT ALIAS1 = EXAMPLE1 :]E A PHYSICIAN %\LD R5D] HIS S]VICES TO A SICK MAN1 :O HAD NO PROP]TY 9 HIS H&S = A LEGAL CONTRACT ( DEBT TO ATTA* TO4 

,IT MAY BE ?\<T AN OBJECTION TO ! SY/EM H]E ADVOCAT$1 ?AT IT MAKES NO PROVISION = ! LEGAL 5=CEM5T ( MORAL OBLIGATIONS ( SO PALPABLE A *>ACT] AS ?OSE H]E M5TION$4 ,BUT ! OBJECTION \<T TO VANI%1 :5 IT IS CONSID]$ H[ V]Y FEW SU* CASES W\LD NE$ TO >ISE1 IF ! :OLE SY/EM (4 CR$IT1 :I* NATURAL LAW AU?ORIZES1 & :I* HAS BE5 H]E ADVOCAT$1 W]E 9 OP]ATION2 = FEW P]SONS ONLY1 IF ANY1 W\LD !N BE SO DE/ITUTE AS TO HAVE NO?+ = A LEGAL CONTRACT TO ATTA* TO1 OR AS TO NE$ TO RECEIVE PECUNI>Y ASSI/ANCE ON SU* GR\NDS AS !SE CASES CONTEMPLATE4 ,BESIDES1 !RE IS NO MORE REASON :Y COMP5SATION %\LD BE 5=C$ BY LAW1 = EV]Y K9DNESS ( A PECUNI>Y NATURE1 ?AT ONE MAN DOES TO ANO!R1 ?AN = K9DNESSES ( ANY O!R SORT4 ,! HONOR1 GRATITUDE1 & S5SE ( DUTY ( MANK9D MAY BE SAFELY TRU/$ TO MAKE SUITABLE RETURNS = ALL ! K9DNESSES :I* M5 WILL BE LIKELY TO %[ TO EA* O!R1 :]E !Y HAVE NO LEGAL GU>ANTEE ( COMP5SATION4 ,SU* IS ! PRUD5T *>ACT] ( M5'S B5EVOL5CE G5]ALLY1 ?AT ! NUMB] ( SU* B5EFITS CONF]R$ WILL NOT BE SO GREAT AS TO BR+ ANY S]I\S 9JURY TO !IR AU?ORS1 EV5 IF SOME ( !M %\LD ACTUALLY GO UNREQUIT$4 ,BESIDES1 ! S5SE ( GRATITUDE1 ON ! P>T ( RECEIV]S1 IS G5]ALLY COMM5SURATE ) ! G5]OSITY ( GIV]S4 ,! CASES1 :]E ! =M] FALLS %ORT ( ! LATT]1 >E TOO FEW TO BE A MATT] ( ANY CONC]N TO ! GOV]NM5T4 

#g4 ,A PROMISSORY NOTE HAS BE5 DEF9$ TO BE 0A WRITT5 PROMISE TO PAY MONEY ABSOLUTELY1 & AT ALL EV5TS40 7,BAILEY ON ,BILLS1 P4 #a4 ,K5T'S ,COMM5T>IES1 ,LECT4 #d#d47 ,& C\RTS N[ ACT ON ?AT !ORY1 & ON ! !ORY ?AT SU* A CONTRACT IS B9D+4 ,BUT IF SU* W]E ! LEGAL MEAN+ ( ! CONTRACT1 IT W\LD PLA9LY BE AN IMMORAL1 ABSURD1 &1 !RE=E1 VOID CONTRACT -- ( NO LEGAL OBLIGATION :ATEV]4 ,RETURN 

#h4 ,A BAILM5T IS :]E ONE P]SON IS TEMPOR>ILY 5TRU/$ ) ! PROP]TY (ANO!R1 EI!R = SAFE KEEP+1 AS 9 ! CASE ( A SPECIAL DEPOSIT2 OR TO BE US$1 AS 9 ! EASE ( A HORSE L5T = A ,J\RNEYS OR TO BE SOLD1 AS 9 ! CASE ( GOODS 5TRU/$ TO A COMMISSION M]*ANT2 OR = SOME O!R PURPOSE2 UND] AN AGREEM5T1 EXPRESS OR IMPLI$1 ?AT HE WILL COMPLY ) ! CONDITIONS ON :I* IT IS 5TRU/$ TO HIM1 & F9ALLY RE/ORE IT TO ! [N]1 7OR ITS EQUIVAL5T1 IF IT BE SOLD17 OR O!RWISE DISPOSE ( IT AGREEABLY TO ! [N]'S DIRECTIONS4 ,! [N] IS CALL$ ! BAILOR-- ! P]SON 9TRUD$1 ! BAILEE4 ,IF ! PROP]TY BE LO/ OR 9JUR$ 9 ! H&S ( ! BAILEE1 )\T ANY FAULT1 OR CULPABLE NEGLECT ON HIS P>T1 ! LOSS FALLS ON ! [N]4 ,RETURN 

#i4 ,! VALUE SOLD BY ! DEBTOR TO ! CR$ITOR MAY (T5 BE ! SAME 0VALUE10 :I* HE HAS JU/ 0RECEIV$0 ( ! CR$ITOR4 ,IT MU/ BE ! SAME1 :]E ! DEBTOR HAS NO O!R PROP]TY4 ,BUT :]E HE HAS O!R PROP]TY1 ! VALUE ?AT HE SELLS TO ! CR$ITOR IS M]G$ 9 ! VALUE ( HIS :OLE PROP]TY1 & CONT9UES SO UNTIL IT IS F9ALLY SEP>AT$ FROM IT TO BE DELIV]$ TO ! CR$ITOR4 ,RETURN 

#a4 ,ON ?IS PO9T MORE H]EAFT]4 ,RETURN 

#a#a4 ,TO SAY ?AT VALUE 5TRU/$ TO A DEBTOR WAS LO/ ?R\< HIS 9CAPACITY = ! JUDICI\S MANAGEM5T ( IT1 7AS IT (T5 REALLY IS1 9/EAD ( BY ACCID5T17 MAKES ! CASE NO /RONG] 9 FAVOR ( ! P]PETUAL LIABILITY ( ! DEBTOR2 BECAUSE A WANT ( CAPACITY IS NO?+ = :I* ! DEBTOR IS CULPABLE1 OR = :I* HE CAN RI<TFULLY BE HELD LIABLE4 ,! CR$ITOR1 !RE=E1 MU/ JUDGE = HIMSELF1 & MUTT ALWAYS BE PRESUM$ TO HAVE JUDG$ = HIMSELF1 & TO HAVE TAK5 ! RISK ( ! DEBTOR'S CAPACITY1 OR 9CAPACITY1 BE=E HE 5TRU/$ HIS PROP]TY TO HIM4 ,ALL HE C\LD EXPECT1 OR HAVE A RI<T TO REQUIRE ( ! DEBTOR1 WAS ! FAI?FUL EX]CISE ( :ATEV] CAPACITY HE POSSESS$4 ,IT IS NEI!R POLICY1 EQUITY1 NOR LAW1 ?AT A MAN %ALL BE PROTECT$ AGA9/ ! LEGITIMATE CONSEQU5CES ( HIS [N NEGLIG5CE1 OR BE P]MITT$ TO ?R[ !M EV5 UPON ANO!R P]SON EQUALLY NEGLIG5T2 MU* LESS UPON AN 9NOC5T P]SON4 ,! LAW REQUIRES DILIG5CE ( ALL4 ,?IS PR9CIPLE1 !RE=E1 =BIDS ?AT A CR$ITOR1 :O HAS BE5 SO NEGLIG5T AS TO 5TRU/ HIS PROP]TY TO AN 9COMPET5T DEBTOR1 %\LD HOLD ! DEBTOR RESPONSIBLE = ITS LOSS1 :5 ! LATT] HAS FAI?FULLY EX]CIS$ HIS BE/ ABILITY = ITS PRES]VATION4 ,RETURN 

#a#b4 ,IF ,I %ALL H]EAFT] HAVE OCCASION TO SPEAK ( ! EXCEPTIONS TO ?IS RULE1 & TO %[ 9 :AM CASES A MORAL OBLIGATION TO PAY MAY REMA91 AFT] ! LEGAL ONE HAS EXPIR$4 ,RETURN 

#a#c4 ,?IS PO9T WILL BE MORE FULLY E/ABLI%$ 9 ! NEXT *APT]4 ,RETURN 

#a#d4 ,?AT IS1 EA* DEBT BECOMES A LI5 9 ! ORD] 9 :I* IT IS CONTRACT$1 IF ! DEBTOR PRACTICE NO FRAUD4 ,BUT ,IF A DEBTOR %\LD FRAUDUL5TLY CONCEAL A =M] DEBT1 :5 CONTRACT+ A SUCCE$+ ONE1 ! FIR/ CR$ITOR MI<T !REBY LOSE HIS PRIOR LI51 & ! SECOND CR$ITOR BECOME 5TITL$ TO IT1 9 PREF]5CE TO HIM4 ,TUE PR9CIPLE1 ON :I* ! DEBTOR'S FRAUD W\LD HAVE ?IS EFFECT AGA9/ ! RI<TS ( HIS FIR/ CR$ITOR IS ?IS4 ,POSSESSION IS PRIMA FACIE EVID5CE ( PROP]TY4 ,!RE IS NO EXCEPTION TO ?IS RULE1 UNLESS 9 CASES ( REAL E/ATE1 :]E LEGISLATION HAS SUB/ITUT$ PUBLIC RECORDS1 = POSSESSION1 AS EVID5CE ( PROP]TY4 ,!RE BE+ NO EXCEPTION TO ! RULE AS TO P]SONAL PROP]TY1 ALL P]SONS >E B\ND TO KN[ IT1 & GOV]N !MSELVES ACCORD+LY4 ,IF1 !RE=E1 ,A PUT HIS P]SONAL PROP]TY 9TO ! B&S ( #a#c--NO MATT] ON :AT PRIVATE AGREEM5T BETWE5 !MSELVES1 :E!R ON ! BAILM5T ( DEBT1 OR ANY O!R BAILM5T -- HE !REBY VIRTUALLY & LEGALLY ASS]TS1 TO ! WORLD1 ?AT ,B IS ! [N] ( ,IT2 & HE CANNOT RETRACT ?AT ASS]TION TO ! 9JURY ( ANY ?IRD P]SON1 :O HAS BE5 DECEIV$ BY IT1 OR :O HAS PUR*AS$1 )\T NOTICE ( ! CONTR>Y1 & ACTUALLY PAID VALUE = ! PROP]TY4 ,! SALE1 WILL1 !RE=E1 BE A VALID ONE TO ! PUR*AS]1 & ! ORIG9AL [N] CAN LOOK ONLY TO HIS BAILEE = ! DAMAGES4 

,?IS PR9CIPLE MAKES IT NECESS>Y ?AT ! [N] ( PROP]TY %\LD TAKE UPON HIMSELF ! RISK 7AS HE EVID5TLY \<T7 ( ANY DI%ONE/ SALES ( BY ?OSE1 TO :OM HE VOLUNT>ILY 5TRU/S IT1 & :OM HE HOLDS \T TO ! WORLD AS ! [N]S1 ,9/EAD ( 5ABL+ HIM TO ?R[ ?IS RISK UPON 9NOC5T & IGNORANT PUR*AS]S1 :O PROCE$ ACCORD+ TO LAW 9 PRESUOL+#a 7:]E !Y >E NOT 9=M$1 OR PUT UPON 9QUIRY TO ! CONTR>Y17 ?AT ! ONE HAV+ ! PROP]TY 9 HIS POSSESSION1 IS ?9 TRUE [N] ( ,IT4 

,ON ?IS PR9CIPLE1 A SECOND DEBT1 7:I* 9VOLVES A SATE ( VALUE 9 ! DEBTOR'S H&S17 CONTRACT$ BY CONCEAL+ FROM ! CR$ITOR ! EXI/5CE ( A =M] DEBT1 MI<T HE VALID AGA9/ ! PRIOR CR$ITOR1 & OP]ATE AS A PRIOR LI5 ON ! DEBTOR'S PROP]TY4 

,BUT !RE W\LD BE LITTLE OR NO DANG] ( SU* TRANSACTIONS2 BECAUSE1 FIR/1 ! HABIT ( OBTA9+ CR$IT IS SO G5]AL1 AS TO S]VE AS REASONABLE NOTICE TO PUT CR$ITORS ON 9QUIRY2 & EV]Y CR$ITOR W\LD !RE=E BE H\ND EI!R TO TAKE ! RISK ( ANY PRIOR DEBTS1 OR TO MAKE SPECIAL 9QUIRY ( HIS DEBTOR1 BE=E GIV+ HIM CR$IT1 :E!R HE W]E ALREADY 9 DEBT8 ,IF HIS DEBTOR W]E TO ANSW] FALSELY1 & !REBY 9DUCE HIM TO GIVE HIM CR$IT ON ! IDEA ?AT HIS 7! DEBTOR'S7 PROP]TY WAS FREE FROM ANY PRIOR LI51 ! ACT W\LD BE ONE ( SW9DL+ T[>DS ! PRIOR CR$ITOR1 & W\LD BE PROP]LY PUNI%ABLE AS SW9DL+1 ESPECIALLY IF ! PRIOR CR$ITOR %\LD SUFF] ANY ACTUAL H>M FROM ! SECOND LI52 & P]HAPS ,IT W\LD BE ! SAME IF HE DID NOT SUFF] ANY4 ,! CASE W\LD BE P>ALLEL TO ?AT ( A MAN1 :O1 AFT] HAV+ GIV5 ONE MORTGAGE ( L&1 %\LD AFT]W>DS1 BE=E ?AT MORTGAGE WAS RECORD$1 GIVE ANO!R MORTGAGE TO ANO!R P]SON1 :O HA% NO KN[L$GE ( ! FIR/ MORTGAGE2 WI% %\LD !REBY DEPRIVE ! FIR/ MORTGAGEE ( HIS PRIOR LI54 

,DEBTORS W\LD HAVE LITTLE OR NO TEMPTATION TO PRACTICE SU* FRAUDS2 = ,IT W\LD NOT ONLY MAKE !M LIABLE AS SW9DL]S1 HUT ALSO LIABLE 9 DAMAGES1 :]E ANY ACTUAL LOSS %\LD BE SUFF]$ BY ! FIR/ CR$ITOR2 & = ?OSE DAMAGES !IR FUTURE E>N+S W\LD BE LIABLE =EV]1 AS WILL H]EAFT] BE %[N1 & NOT M]ELY !IR PRES5T PROP]TY1 AS 9 CASE ( DEBT4 ,IF1 !RE=E1 A DEBTOR %\LD HE UNABLE TO OBTA9 A SECOND CR$IT ON ACC\NT ( ! LI5 ( A PRIOR ONE ON HIS PROP]TY1 HIS TRUE C\RSE W\LD BE TO DO ! BE/ HO C\LD ) ! MEANS 9 HIS H&S1 UNTIL HIS PRES5T DEBT %\LD COME TO MATURITY1 !N PAY IT1 OR PAY TO ! EXT5T ( HIS ABILITY1 & ?US CANCEL IT4 ,HE W\LD !N BE FREE TO CONTRACT A NEW ONE4 

,IT P]HAPS MI<T BE EXP$I5T = DEBTORS1 :5 CONTRACT+ SECOND DEBTS1 TO TAKE WRITT5 ACKN[L$GM5TS FROM !IR CR$ITORS ?AT !IR =M] DEBTS 7NAM+ !M7 W]E DISCLOS$ TO !M4 ,?IS W\LD PUT IT \T ( ! P[] ( CR$ITORS TO ,IMPUTE FRAUD TO !IR DEBTORS2 & W\LD ALSO PREV5T ANY COLLISION BETWE5 CR$ITORS AS TO ! ORD] ( !IR RESPECTIVE RI<TS4 ,PROBABLY1 H[EV]1 ?IS PRECAUTION W\LD BE UNNECESS>Y1 = ! BURD5 ( PRO( W\LD ALWAYS BE UPON ! SECOND CR$ITOR TO %[ ! FRAUDUL5T CONCEALM5T1 & NOT UPON ! DEBTOR TO PROVE HIS DISCLOSURE1 OR ?AT NO DISCLOSURE WAS ASK$4 ,! SECOND CR$ITOR'S [N TE/IMONY W\LD BE 9ADMISSIBLE TO GIVE HIMSELF A PRIOR LI52 &1 UNCORROBORAT$1 IT W\LD BE SUSPICI\S TE/IMONY EV5 9 A CRIM9AL PROSECUTION = SW9DL+4 ,! PROBABILITY1 !RE=E1 IS1 ?AT = WANT ( PRO( ( ANY FRAUD1 IF = NO O!R REASON1 !RE W\LD BE NO COLLISION AMONG CR$ITORS1 AS TO ! ORD] ( !IR RESPECTIVE LI5S1 UNLESS SECOND CR$ITORS1 AT ! TIME ( GIV+ CR$IT1 %\LD TAKE WRITT5 DECL>ATIONS FROM !IR DEBTORS ?AT !RE W]E NO PRIOR LI5S ON !IR PROP]TY4 ,& DEBTORS W\LD NOT1 ( C\RSE1 D>E TO PUT FALSE DECL>ATIONS ( ?AT K9D 9 WRIT+1 BECAUSE !Y W\LD !REBY CONVICT !MSELVES ( SW9DL+4 ,SO ?AT !RE W\LD BE NO COLLISION AMONG CR$ITORS ON ?IS GR\ND UNLESS 9 SOME FEW CASES1 :]E DEBTORS MI<T BE SU* OP5 VILLA9S AS TO PUT !IR FRAUDUL5T REPRES5TATIONS 9 WRIT+4 

,! PR9CIPLE /AT$ 9 ?IS NOTE W\LD BE NO OB/ACLE TO A DEBTOR'S SELL+ OR EX*ANG+ ANY PROP]TY ,9 HIS H&S = AN EQUIVAL5T VALUE ( A DIFF]5T K9D1 PROVID$ HE %\LD ACT ACCORD+ TO HIS BE/ JUDGM5T1 & ) NO 9T5T TO LESS5 ! VALUE ( HIS CR$ITOR'S SECURITY2 BECAUSE ! LI5 ( HIS CR$ITOR IS NOT A SPECIAL LIEU ON SPECIFIC >TICLES ( PROP]TY1 7NONE SU* BE+ DESIGNAT$ BY ! CONTRACT17 BUT UPON ! AM\NT ( VALUE ?AT ADH]ES 9 ALL ! PROP]TY 9 HIS H&S--:I* VALUE HE HAS AN IMPLI$ AU?ORITY FROM ! CR$ITOR TO CONV]T 9TO DIFF]5T =MS1 BY LABOR & TRAFFIC1 AT HIS DISCRETION1 7AS WILL BE MORE FULLY %[N 9 ! NEXT *APT]47 ,& :5 HE SOILS AN >TICLE = MONEY1 OR MAKES AN EX*ANGE ( IT = ANO!R COMMODITY1 ! EX*ANGE IS A M]E CONV]SION ( ! SAME VALUE 9TO A DIFF]5T =M4 ,! CR$ITOR'S RI<T ATTA*ES TO IT1 OR ADH]ES TO IT1 9 ITS NEW =M1 9 ! SAME MANN]1 & TO ! SAME EXT5T1 ?AT IT DID 9 ITS ORIG9AL ONE4 ,RETURN 

#a#e4 ,OGD5 VS4 ,SAUND]S1 #ab ,:EATON1 P4 #c#d4 ,RETURN 

,FROM 3 ,AN>*Y ,>*IVES4 

,*RONOLOGY 3 
,NOVEMB] #c1 #ahde 3 ,*APT] #e -- ,PUBLICATION4 
,FEBRU>Y #a1 #bag 3 ,*APT] #e -- ,ADD$4 

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