Massachusetts § 40 - Trusts for the benefit of creditors; validity of certain acts of trustees; insolvency proceedings
Full text of Massachusetts Massachusetts General Laws § 40 — Trusts for the benefit of creditors; validity of certain acts of trustees; insolvency proceedings, with citation guidance and answers to common questions.
§ 40. Trusts for the benefit of creditors; validity of certain acts of trustees; insolvency proceedings
Section 40. If a debtor residing in the commonwealth has made an assignment to a trustee for the benefit of his creditors, the acts of the trustee thereunder in protecting and caring for the property and converting it into money, if done in good faith and with reasonable judgment and discretion, shall, subject to the following section, be valid notwithstanding subsequent proceedings in insolvency by or against the debtor, and the assignee in insolvency shall, if such assignment is avoided by him, recover the net amount of money received for, or the price of, the property sold and converted by such trustee instead of the property itself.
Source: official Massachusetts text · Last verified 2026-08-27
Frequently Asked Questions About Massachusetts § 40
What does Massachusetts General Laws § 40 cover?
Section 40 ("Trusts for the benefit of creditors; validity of certain acts of trustees; insolvency proceedings") is part of the Massachusetts General Laws, the codified statutory law of Massachusetts. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Massachusetts § 40?
A common citation format is "Massachusetts General Laws § 40" (Massachusetts). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Massachusetts law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Massachusetts official source linked on this page or consult a licensed Massachusetts attorney.
How does Massachusetts § 40 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Massachusetts can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Massachusetts.