In re Clough

Citations

• 197 F. 185
• 1912 U.S. Dist. LEXIS 1406

Syllabus

<p>1, Bankruptcy (§ 184*) — Chattel Mortgage — After-Acquired Property.</p> <p>A chattel mortgage on after-acquired property of a bankrupt is valid under the statutes of Vermont against the mortgagor’s trustee in bankruptcy if the mortgagee has taken possession, unless such possession was taken to afford a preference, though the possession was acquired within four months prior to the date of the mortgagor’s bankruptcy petition and with knowledge that he was Insolvent and contemplated bankruptcy, and this though the property was subject to an attachment at the time possession was taken which was invalidated by the bankruptcy proceedings.</p> <p>[Ed. Note. — -For - other cases, see Bankruptcy, Cent. Dig. §§ 275-277; Dec. Dig. § 184.*]</p> <p>2. Attachment (§ 164*) — Levy—Possession of Attaching Officer.</p> <p>An attachment of personal property by a copy lodged in the town clerk’s office, and made according to the Vermont statute, gives posses- . sion to the attaching officer.</p> <p>[Ed. Note. — For other cases, see Attachment, Cent-. Dig. §§ 464-479; Dec. Dig. § 164.*]</p> <p>3. Bankruptcy (§ 184*) — Chattel Mortgage — Mortgagee’s Possession.</p> <p>A bankrupt executed a mortgage on his stock of goods and fixtures, covering after-acquired property, in March, 1910. On May 6, 1911, his stock was attached in a creditor’s action, the officer taking the key to the store from the bankrupt, locking it, and then handing the key back to the bankrupt as a custodian. On July 24th a deputy sheriff, for the mortgagee, attempted to take possession by borrowing the key from the bankrupt, going to the store, unlocking, and entering it, though the attaching officer informed him that he was in possession under the attachment The deputy sheriff remained in the store for part of one day, then locked it, and retained the key until he delivered it to the bankrupt’s trustee August 18, 1911. Reid, that the possession of the attaching officer continued until it was dissolved by the bankrupt