Dubuque v. Stich

Citations

• 16 Wash. 641
• 48 P. 344
• 1897 Wash. LEXIS 371

Syllabus

<p>IMPLIED TRUSTS—MORTGAGE OF PROMISSORY NOTES — RIGHTS OF MORTGAGOR IN SURPLUS PROCEEDS — FORECLOSURE—COLLATERAL ATTACK.</p> <p>Where a chattel mortgage is given upon promissory notes by the holder thereof to secure the payment of his own note, and, upon a foreclosure for default in payment of the mortgagor’s notes, the notes are purchased by the mortgagee for the amount of the indebtedness due, no trust arises by operation of law in the mortgagor’s favor, requiring the mortgagee to account for the excess subsequently realized from the proceeds of such notes upon the enforcement of their collection from the original makers.</p> <p>The judgment of a court having jurisdiction of the persons and subject matter in an action for the foreclosure of a chattel mortgage cannot be collaterally attacked on the ground that the property embraced in the chattel mortgage was not a proper subject of chattel mortgage and of foreclosure sale.</p>