Greenebaum v. Wheeler

Citations

• 90 Ill. 296

Syllabus

<p>1. Chattel mortgage—right of mortgagor to sell and me proceeds renders the transaction fraudulent. Where a chattel mortgage is given on personal property, and the mortgagee, by a written agreement, gives the mortgagor the right to manufacture the materials and sell property, with the approval of the mortgagee, and to receive the price and retain a certain sum therefrom for each month to enable the mortgagor to run the business, pay hands and support his family, the mortgage will be fraudulent and void as against other creditors of the mortgagor.</p> <p>2. To render such a security valid, as against third persons, the debtor must part with all right to appropriate the property to his own use during the existence of the lien, or the power to sell -it and appropriate the proceeds of the sale to his own use.</p>