An agreement, made upon a sufficient consideration, between an insolvent or embarrassed debtor and hls creditors, whereby the latter, for the sake of immediate payment, agree to accept a div-idend less than the whole amount of their claims, to be distributed pro rata, in dis-charge and satisfaction of the whole. Bank v. McGeoch, 92 wis. 286, 66 N. W. 606; Crossley v. Moore, 40 N. J. Law, 27; Craw-ford v. Krueger, 201 Pa. 348, 50 Atl. 931; In re Merriman’s Estate, 17 Fed. Cas. 131; Chapman v. Mfg. Co., 77 Me. 210; In re Ad-ler (D. Q) 103 Fed. 444
Source: Black's Law Dictionary 2nd Ed (1910)
