C. B. Rogers & Co. v. Munnerlyn

Citations

• 36 Fla. 591

Syllabus

<p>1. A mortgage embracing real estate and a stock of merchandise with permission to the mortgagor to retain and sell the goods in the usual course of trade without accounting to th.e mortgagee for the proceeds is void as to creditors of the mortgagor to the extent of the merchandise.</p> <p>2. When a mortgage covers a stock of merchandise, and also real estate, and is constructively void as to the goods on account of the mortgagor’s permission to continue in possession and sell the goods in the usual course of trade, but there is no fraudulent intent in fact in the execution of the mortgage, it will be valid as to the real estate.</p> <p>3. A creditor who obtains judgment or sues out an attachment after the record of a valid mortgage is not entitled to protection under the statute as an innocent purchaser, although the debt upon which the judgment or attachment was based was contracted after the execution of the mortgage and before its record. Creditors and subsequent purchasers are placed upon the same footing under the statute „as to prior unrecorded conveyances..</p>