Ramsay Hannay amassed a fortune while living in India and sent a considerable portion of his wealth to be managed by his brother, Sir Samuel Hannay, in Britain. Having collected nearly £50,000 of Ramsay’s funds, Sir Samuel granted him a heritable bond secured by all of Sir Samuel’s lands in Scotland. Ramsay did not take infeftment on the bond until after Sir Samuel’s death—that is, he did not complete the steps necessary to realize his interest, which are comparable to registering a deed. When Sir Samuel died, it was discovered that he had been insolvent for some time, including when he granted the bond to Ramsay. In a ranking and sale of his estate, the creditors objected that the bond gave Ramsay a fraudulent preference. However, the Court repelled the creditors’ objections, and the decision was affirmed in the House of Lords.

Published Reports

"Shaw's Digest." Bell and Lamond, Digests of Cases Decided in the Supreme Courts of Scotland, pg. 164