Massey v. Hardin

Citations

• 81 Ill. 330

Syllabus

<p>1. Chattel mortgage—effect of sale of property. Where property is sold under a chattel mortgage, and the mortgagee becomes the purchaser, but, by an arrangement between the mortgagor and the mortgagee, the property still continues to belong to the mortgagor, the pretended sale being merely colorable, the indebtedness secured by the mortgage is not paid, and the mortgagor will still be liable thereon.</p> <p>2. If, in such case, any of the property is levied on after such sale, under an execution against the goods and chattels of the mortgagee, and sold, the mortgage debt will be thereby extinguished to the extent of the property so levied on.</p> <p>3. Same—mortgagee can not question regularity of sale. Where the morb gagee in a chattel mortgage buys the mortgaged property, at a sale made at his instance, for the amount of the debt and costs, and neither the mortgagor nor his creditors complain of any irregularity in the sale, the mortgagee can not call in question its regularity, and the purchase by him is a payment of the mortgage debt.</p>