During the period under survey there were few cases dealing with creditors' rights or security transactions. One of these, Cannon Mills, Inc.v. Spivey,' presented the question of whether the mere filing of a bill to subject the property of an insolvent debtor for the benefit of creditors created a lien lis pendens, or whether registration of the lien was necessary before it became effective. The facts were as follows. A judgment creditor with a nulla bona return filed a general creditors' bill on October 18, to subject the property of an insolvent debtor for the benefit of all his creditors. The lot which was involved in the controversy was specifically described in the bill. Five days later a judgment creditor had an execution issued and levied on the lot on October 29. The papers were sent to the circuit court and the court condemned the lot and ordered it sold, and the sheriff advertised it for sale.
Forrest W. Lacey,
Creditors' Rights and Security Transactions -- 1961 Tennessee Survey (II),
15 Vanderbilt Law Review
Available at: https://scholarship.law.vanderbilt.edu/vlr/vol15/iss3/13