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PEACHTREE BANK TRUST COMPANY v. ATHA

Court of Appeals of Georgia.
Oct 1, 1979
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SHULMAN, Judge.

Plaintiff-creditor brought suit to cancel and render null and void a deed to real estate from defendant-husband to his wife (also a defendant) as a fraudulent conveyance under Code Ann. § 28-201 (2). The court entered a directed verdict on behalf of defendants-appellees on the grounds that plaintiff had renewed defendant-husband's note of indebtedness subsequent to its notice of the defendant-husband's deed of conveyance to his wife. On appeal, we affirm.

The undisputed evidence produced by plaintiff itself showed that plaintiff had knowledge of defendant-husband's conveyance of the real estate to his wife, prior to the time plaintiff renewed defendant's loan. It is clear, then, that plaintiff did not rely on defendant-husband's ownership of the real estate in issue when it subsequently extended him credit. Compare Gentry v. Cowan, McClung Co., 66 Ga. 720; Gormley v. Askew, 177 Ga. 554 ( 170 S.E. 674). This being so, the plaintiff, as a subsequent creditor with notice, could not void the conveyance under § 28-201 (2). Jowers v. High Point Furn. Co., 10 Ga. App. 297 (1) ( 73 S.E. 415). The court properly directed the verdict on behalf of the defendants.

Judgment affirmed. Deen, C. J., and Carley, J., concur.

SHULMAN, Judge.

ARGUED JULY 2, 1979 — DECIDED OCTOBER 1, 1979.