In re Sentenne & Green Co.

Citations

• 120 F. 436
• 1903 U.S. Dist. LEXIS 362

Syllabus

<p>.1. Chattel Mortgages — Construction—After-Acquired Property.</p> <p>A chattel mortgage described as covered thereby a lithographic press “and all and singular each and every of the tools, implements, furniture, equipments, and appliances * * * row in my said lithographic establishment, * * * and constituting the plant with which said business is now carried on, and * * * all of the new lithographic machinery, presses, tools, implements, and appliances of every kind that I shall hereafter put into said establishment and plant for the purpose of improving the same or keeping it as good as It is at present.” Held, that such mortgage did not cover machinery and appliances subsequently placed in the establishment by the mortgagor for the purpose of adding a new branch of business, and not used in the business of lithographing.</p> <p>2. Bankruptcy — Avoidance op Liens — Subrogation op Trustee.</p> <p>Where, under the law of the state, a chattel mortgage on after-acquired property is valid between the parties, but void as against attaching creditors, a trustee in bankruptcy will not be subrogated by the court to the rights of an attaching creditor, to enable him to defeat the lien of a mortgagee of such property whose mortgage was of record, and who has the superior equity, because the new property was added for the purpose of keeping the mortgaged plant in as good condition as when the mortgage was given.</p> <p>S. Chattel Mortgage — Apter- Acquired Property — Additions Made by Purchaser prom Mortgagor.</p> <p>A chattel mortgage of a mechanical plant, covering additions made to maintain or improve its condition and efficiency, which is valid against the mortgagor, will be enforced as to additions made to the plant for that purpose by a purchaser from the mortgagor, who assumed all his obligations under the mortgage.</p>