Blalock v. . Strain

Citations

• 29 S.E. 408
• 122 N.C. 283
• 1898 N.C. LEXIS 246

Syllabus

<p>Action of Claim and Delivery — Chattel Mortgage — ■ Agreement between Mortgagor and Mortgagee for Substitution of other Property for Property Mortgaged —Conditional Sale — Notice—Registration.</p> <p>X- An agreement between a mortgagor and a mortgagee for the substitution of other property for that conveyed in the mortgage, while good as between the parties and enforcible in equity, is not a mortgage so as to give a lien in preference to creditors and purchasers for value. Semble, that in the absence of an agreement between the mortgagor and mortgagee the latter may follow and subject property for which the mortgaged property has been exchanged before third parties have acquired rights therein.</p> <p>2. Where registration of an instrument is required, no notice, however full and formal, will sujiply the place of registration.</p> <p>• 3. Where A, as mortgagee of personal property, agreed that the mortgagor might exchange the mortgaged property for other property which should stand as security in place of the former, and the mortgagor executed to B a mortgage upon the property so received in exchange; Held,, that the mortgage to B is superior to that of A, although B had notice of the agreement between A and his mortgagor.</p> <p>4. In such case, even if the mortgagor had acted as the agent of the mortgagee in the prior mortgage in making the exchange, the agreement that the property received in exchange should stand in the place of that described in the mortgage, made it a conditional sale and invalidated it as to creditors and purchasers for value notwithstanding they had notice of the agreement.</p>