Dunning v. Mead

Citations

• 90 Ill. 376

Syllabus

<p>Chattel mortgage—when 'fraudulent as to creditors. A chattel mortgage on a stock of goods which authorizes the mortgagor to retain possession and carry on his business by selling and buying goods, is void as to creditors and purchasers of the mortgagor. And though the mortgage is fair on its face, if the mortgagee soon after its execution gives written permission to the mortgagor to sell the goods in the usual course of his business, but to hold the proceeds as agent for him, and such sales are made, it will render the mortgage void ■as to bona fide creditors and purchasers, and the goods will be liable to seizure under a distress warrant for rent due from the mortgagor.</p>