Hall v. Redding

Citations

• 13 Cal. 214

Syllabus

<p>The Uncle Sam Mining Company execute a mortgage upon their mining claims to R. a Director of the company. The mortgage was in fact in trust to secure F. et als. who had, as sureties of R. signed with him a joint and several note to D. for money loaned by him to R. The money was for the company. R. assigns this mortgage to F. to secure him against his liability on the note, delivering the mortgage, at the same time, to F. who retained it a few minutes and returned it to R. to receive the interest from the company, as agent for him, F. The note is unpaid; R. owes the company nothing: HcZcZ, that after the assignment, R. had no interest in the mortgage which a judgment creditor could reach; that the delivery of the mortgage to R. for the purpose of collecting interest, there being no circumstance of fraud or suspicion, did not impair the rights of the assignee; that the liability of F. et als. as sureties was a sufficient consideration for the assignment, and that such assignment is not a mortgage of a mortgage.</p> <p>The doctrine of continuous possession of personal property after sale or mortgage does not apply to the case of a paper, the mere evidence of a debt.</p> <p>If or does the Chattel Mortgage Act, or the general statute of frauds apply to such case.</p>