Keyes v. Sabin

Citations

• 101 Wash. 618
• 172 P. 835
• 1918 Wash. LEXIS 894

Syllabus

<p>Assignments for Benefit of Creditors—Priorities—Unrecorded Chattel Mortgage. An assignee for the benefit of creditors under a consummated assignment, who acquired possession of the property without knowledge of an unrecorded chattel mortgage, can assert priority over the mortgage the same as the creditors could have done under assignment directly to them.</p> <p>Same — Title Acquired. A consummated assignment for the benefit of creditors under which the assignee takes possession prior to the recording of a prior mortgage creates more than a lien in favor of general creditors, who acquire ownership and at least equitable title.</p> <p>Chattel Mortgages — Validity ■— Stock in Trade — Sales and Proceeds—Rights of Creditors. A chattel mortgage on a general stock of merchandise, is void as to creditors of the mortgagors, where the stocji was left in possession of the mortgagors with power to sell in the usual course of trade without any agreement to apply any part of the proceeds to the satisfaction of the mortgage debt.</p> <p>Same—Failure to Record. A chattel mortgage is void as to creditors of the mortgagors where it was not recorded within ten days after its execution, nor until after an assignment for the benefit of creditors had been made and the assignee had taken possession; since the assignment created a specific lien for the benefit of creditors; Rem. Code, §§ 3670, 3660, requiring recording within ten days after execution as against creditors and subsequent purchasers or incumbrancers in good faith.</p>