Beamer v. Freeman

Citations

• 84 Cal. 554
• 24 P. 169
• 1890 Cal. LEXIS 841

Syllabus

<p>Chattel Mortgage — Registry—Validity as against Creditors — Construction of Code. — Section 2957 of the Civil Code, declaring that a mortgage of personal property is void as against creditors of the mortgagor unless it is recorded in the same manner as grants of real property, is designed to substitute the record of the mortgage for the actual delivery and change of possession, otherwise required by section 3440 of the same code.</p> <p>Id. — Attachment before Record. —Without holding that such unrecorded mortgage is void per se as against creditors at large of the mortgagor, it is certainly void as against creditors who obtain a lien by attachment of the mortgaged personalty in the hands of the debtor before record of the chattel mortgage.</p> <p>Id.—Dissolution of Attachment — Effect of Insolvency Proceedings.</p> <p>— Though such attachment is dissolved by subsequent proceedings in insolvency within one month, such dissolution does not inure to the benefit of the holder of the chattel mortgage which was unrecorded at date of the attachment.</p> <p>Id. — Replevin by Assignee of Insolvent. ■— The attached property may be recovered in an action of replevin by the assignee of the insolvent debtor, as having, by force of the attachment befoie record of the mortgage, remained in the insolvent debtor by operation of law.</p> <p>Id. — Disposition of Attached Property. — The attached property, when recovered by the assignee, must be regarded as a portion of the general assets of the insolvent, which must be disposed of for the common benefit of all his creditors.</p> <p>Id. •—Construction of Insolvent Act. —The Insolvent Act must receive a reasonable construction, in order to effectuate its object and promote justice; and it must be regarded as designed to protect the creditors of the insolvent, and not to give an advantage to their detriment to a mortgagee of personal property who had failed to acquire a lien by his own laches in not recording his mortgage before the