Goldmann, J.s.c. (orally).
Plaintiffs bring this action to set aside a conveyance made by defendants McGrain to defendants Haines as being in fraud of creditors. The parties have agreed that the cause may be determined upon the following stipulation of facts without the taking of testimony and proofs.
Defendant John McGrain was the owner of the premises in question, constituting all his assets and consisting of a dwelling, barn, outbuildings and about 40 acres of land located in Mansfield Township, Burlington County. On April 4, 1955 he and his wife, defendant Emily McGrain, conveyed this property to their daughter, defendant Virginia Haines, and her husband, defendant Harold Haines. The only consideration for the conveyance was the following recital in the deed:
"This conveyance is made subject to right of the parties of the first part [the McGrains] to occupy the same as a home for and during the term of their natural lives, and as part of the consideration the parties of the second part agree to support and maintain the parties of the first part and pay all charges for insurance, taxes and maintenance of the said property."
At the time of the conveyance defendant John McGrain was indebted to the plaintiffs on a book account in the amount of $1,406.30, plus interest. On December 17, 1956 plaintiffs obtained a judgment against him on this claim in the amount of $1,631.28, with costs. Defendants Haines have actually furnished support in accordance with their agreement and spent considerable sums in improving the premises. (It may
be noted, parenthetically, that just what expenses the Haines were put to is not stated; they make no claim for reimbursement.) The stipulation goes on to state that they have changed their mode of living by reason of the conveyance.
The parties have agreed that the sole question to be decided is whether the conveyance was in fraud of creditors because the consideration received by McGrain was not a "fair consideration," as required by law.
R.S. 25:2-10, which is identical with section 4 of the Uniform Fraudulent Conveyance Act, provides that
"Every conveyance made and every obligation incurred by a person who is or will be thereby rendered insolvent is fraudulent as to creditors without regard to his actual intent if the conveyance is made or the obligation is incurred without a fair consideration."
R.S. 25:2-9, identical with section 3 of the uniform act, provides:
"Fair consideration is given for property or obligation:
(a) When in exchange for such property or obligation, as a fair equivalent therefor, and in good faith, property is conveyed or ...