In re National Valve Co.

Citations

• 140 F. 679
• 15 Ohio F. Dec. 199
• 1905 U.S. Dist. LEXIS 105

Syllabus

<p>Bankruptcy-Liens — -Chattel Mortgage on After-Acquired Property.</p> <p>Under the law of Ohio relating to chattel mortgages, which governs as to their validity and the rights of the mortgagee in bankruptcy proceedings in that state, a mortgage covering goods which may be afterwards acquired by the mortgagor to replace other mortgaged goods sold by him creates a valid lien on such after-acquired property from the time the mortgagee takes, lawful possession of the same thereunder; and where the mortgage was given more than four months prior to the bankruptcy of the mortgagor the taking of possession by the mortgagee within such four months with the consent of the mortgagor, although with knowledge of the mortgagor’s insolvency, does not constitute a voidable transfer or preference under the bankruptcy act, where it was not done to hinder, delay, or defraud other creditors, but solely to protect his own rights, and was authorized by the terms of the mortgage.</p>