d to show by proof, that
the conveyance was made in good faith and for a valuable consideration.
In other states, the strict rule prevails, that, without a change of
possession, the transaction is fraudulent _in law_; in which case the
assignee, or person claiming the property under the assignment, is not
permitted to show that, in point of _fact_, the transaction was _bona
fide_, (in good faith.)

Sec.5. The rule that holds every conveyance to be fraudulent unless the
property immediately changes hands, often operates to inconvenience and
even injury of honest debtors. A debtor may be obliged to part with
property, however convenient or needful its present use may be to him,
when, but for this stringent rule of law, he might borrow the money to
pay a debt, or procure a postponement of payment, and retain the use of
the property pledged.

Sec.6. In many of the states, this perplexing question has been settled by
statute. In the state of New-York, the law expressly declares, that a
sale or an assignment without immediate delivery and a change of
possession, shall be presumed to be fraudulent and void as against
creditors, unless the party claiming the property under the assignment
shall make it appear that the same was made in good faith, and without
any attempt to defraud. Laws more or less similar to this, and securing
to the assignor the use of the mortgaged property, are believed to exist
in a majority of the states. The instruments conveying the property are
usually called _chattel mortgages_, and are required to be recorded as
deeds; in New-York, and perhaps a few other states, only filed in the
town or county clerk's office.

Sec.7. In the sale of personal property, though there should be a judgment
against the vendor, and the purchaser should have notice of it, that
fact would not of itself render the sale fraudulent. But if the
purchaser, knowing of the judgment, purchases with the view or purpose
to defeat the creditor's execution, the transaction is fraudulent. The
question of fraud depends upon the motive.

Sec.8. Assignments are sometimes made by debtors for the benefit of their
creditors. A person deeply indebted, or in embarrassed circumstances,
assigns his property, in trust, to one or more persons, who are to
dispose of it, and to apply the avails to the payment of his creditors,
or a part of them; for the law does not forbid a debtor's giving a
preference to one or more creditors over others, provid