In re Hull

Citations

• 115 F. 858
• 1902 U.S. Dist. LEXIS 249

Syllabus

<p>1. Bankruptcy — Validity of Chattel Mortgage.</p> <p>The rule of the supreme court of the United. States that a chattel mortgage of goods, giving the mortgagor the right to sell and to replace the goods sold with others which should come under the mortgage, is fraudulent and void as to other creditors as a matter of general law, is to be followed in bankruptcy proceedings, regardless of the decisions of the courts of the state on the question.</p> <p>2. Same — Property Passing to Trustee.</p> <p>The provision of Bankr. Act 1898, § 70 (5), which vests in the trustee title to property of the bankrupt “which prior to the filing of the petition he could by any means have transferred,” covers personal property which, although mortgaged, the bankrupt was authorized by the terms of the mortgage to sell.</p> <p>8. Same — Preferences—Mortgage.</p> <p>A chattel mortgage given within four months prior to the bankruptcy of the mortgagor, to secure the purchase price of goods then bought, and including such goods and also other goods previously owned by the mortgagor, is void as an illegal preference, under the bankruptcy act, as to the goods previously owned, but is valid as respects the new goods which were acquired as a part of the same transaction.1</p>