Egan State Bank v. Rice

Citations

• 119 F. 107
• 56 C.C.A. 157
• 1902 U.S. App. LEXIS 4645

Syllabus

<p>1. Bankruptcy—Chattel Mortgage—Validity.</p> <p>Under Bankr. Act 1898, § 67e [U. S. Comp. St. 1901, p. 3449], providing that incumbrances of property made by one adjudged bankrupt within tour months prior to the filing of the petition, with intent to hinder or defraud his creditors, shall be void as against them, a chattel mortgage given by a merchant to a bank on his stock in trade within four months prior to his bankruptcy, he retaining possession under an agreement that the proceeds of sales should go to pay the mortgage and other debts, and he from the proceeds paying expenses and debts in general, is void, as against the creditors, notwithstanding the fact that it contained a provision requiring the merchant to make daily deposits of all sales, to apply on the debt to the bank.</p>