Laurel Oil & Fertilizer Co. v. Horne

Citations

• 101 Miss. 629
• 57 So. 624

Syllabus

<p>1. Bankruptcy. Preferences. Transfers. Necessity of Recording. Code 1906, Sec. 2787.</p> <p>Under Bankruptcy Act July 1, 1898, Ch. 541, Sec. 60a, 30 Stat. 562, U. S. Comp.' St. 1901, page 3445, as amended by Act Feb. 5, 1903, Ch. 487, Sec. 13, 32 Stat. 799, U. S. Comp. St. Supp. 1909, page 1315, invalidating transfers made within four months, and providing, that,, if by law a transfer is required to be recorded, the period of four months shall not expire until four months after recording; a deed of trust, made more than four months before the grantor filed a petition in bankruptcy, but recorded within four months, is not void since under Sec. 2787, Code of 1906, an unrecorded deed of trust is valid as between the parties thereto and as against creditors and hence is not such an instrument, within the meaning of the bankrupt law, as is required by the laws of this state, to be recorded.</p> <p>ON SUGGESTION OE ERROR.</p> <p>2. Bankruptcy. Preference. Mortgage. Avoidance by Bankrupt.</p> <p>Even though Code of 1906, Sec. 2787 is a law by which recording a mortgage is “required” within Bankrupt Act, July 1, 1898, Ch. 541, Sec. 60a„ 30 Stat. 562, U. S. Comp. St. 1901, page 3445, as amended by Act Feb. 5, 1903, Ch. 487, Sec. 13, 32 Stat. 799, U. S. Comp. St. Supp. 1911, page 1506, so that such mortgage though given more than four months before the filing of the petition in bankruptcy having been recorded within such period, may be avoided, notwithstanding there are only general creditors of the bankrupt; yet authority to avoid a preference, and recover the property, being given by section 60b, only to the trustee in bankruptcy, the bankrupt having made a composition settlement with his other creditors and been discharged without the mortgagee having proved his claim, or his mortgage being questioned, cannot, by reason of the bankrupt law, attack the mortgage and the sale thereunder.</p> <p>3. Same.</p> <p>In such case if the mortgage was fraudulent and obtained at a t