First National Bank v. Caperton

Citations

• 74 Miss. 857

Syllabus

<p>1. Mortgages. Right of mortgagor. Consumptive use. Fraud on creditors.</p> <p>A mortgage, executed by a manufacturing company on its products, ■wherein is reserved to the mortgagor the right to keep, use and sell them in the usual course of business, is fraudulent as to the creditors of the mortgagor.</p> <p>2. Sahe. Right of mortgagee. Seizure.</p> <p>Such a mortgage is not rendered valid by a provision that in case the mortg-agor should sell the property, or any interest therein) that the mortgagee should take immediate possession for the purposes of the mortgag-e.</p> <p>3. Pledge. Possession.</p> <p>Possession of the property and good faith on the part of the pledgee are both necessary to constitute a valid pledge as against the rights of creditors of the pledgor.</p>