Montgomery County National Bank v. Wherry

Citations

• 102 Kan. 224
• 169 P. 1146
• 1918 Kan. LEXIS 11

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Chattel Mortgage — Possession by Mortgagee — Conditional Sale by Mortgagee — Not Determinative of Value of Property. Where a mortgagee takes charge of mortgaged chattel property on the default of the mortgagor and endeavors to sell it, but only succeeds in making a conditional and abortive sale, the price fixed in the conditional and abortive sale is not necessarily a fair and reasonable basis for determining the true value of the property.</p> <p>2. Same — Invalid Sale by Mortgagee — Conversion of Property. Where a mortgagee takes charge of chattel property, owing to the default of his debtor, the mortgagor, it is the privilege of the mortgagee under the expressed terms of the mortgage to sell the mortgaged property outright, but the mortgagee has not the right to make a conditional sale of the property; it is technically a conversion of the property to make such conditional sale of it, and the mortgagee is liable to the mortgagor for the fair and reasonable .value of the property at the time of such conversion.</p>