In re Plymouth Elevator Co.

Citations

• 191 F. 633
• 1911 U.S. Dist. LEXIS 127

Syllabus

<p>1. Bankruptcy (§ 283*') — Jurisdiction op Bankruptcy Court — Adverse Clams to Property.</p> <p>Where a chattel mortgagee who had taken possession erf the mortgaged property for the purpose of foreclosure prior to the filing of a petition in bankruptcy against the mortgagor was notified of an application by the bankrupt’s trustee for an order authorizing him to sell the property free of incumbrance, and to hold the proceeds as a special fund subject to the mortgagee’s claim, in case it should be established, permitted such an order to be made without objection and acquiesced therein by surrendering the property to the trustee for sale, pursuant to such order, the proceeds of the sale came rightfully into possession of the bankruptcy court which had jurisdiction to distribute the same and to summarily determine the mortgagee’s rights therein.</p> <p>[Ed. Note. — For other cases, see Bankruptcy, Dec. Dig. § 288.*</p> <p>Jurisdiction of federal courts in suits relating to bankruptcy, see note to Bailey v. Mosher, 11 C. C. A. 313.]</p> <p>2. Corporations (§ 415*) — Authority of President — Execution of Mortgage.</p> <p>Under Civ. Code, S. D. §§ 434, 435, providing that the powers of a corporation shall be exercised and its business conducted and controlled by its board of directors, and that the officers shall perform the duties enjoined on them by law and the by-laws, a chattel mortgage executed to secure an antecedent debt by the president of a corporation without authority under the by-laws, and which was not authorized nor ratified by the directors, who had no knowledge of it until the bankruptcy of the corporation, was invalid.</p> <p>[Ed. Note. — For other cases, see Corporations, Cent. Dig. §§ 1664-1669: Dec. Dig. § 415.*]</p>