Mutual Investment Co. v. Walton Machine Co.

Citations

• 91 Wash. 298

Syllabus

<p>Corporations — Insolvency — Chattel Mortgages — Aeeidavit oe Good Faith — Creditors—Receivers. Rem. & Bal. Code, § 3660, providing that a chattel mortgage is void as against creditors of the mortgagor or subsequent purchaser, and incumbrancers in good faith, unless accompanied by the affidavit of the mortgagor that it is made without design to hinder, delay or defraud creditors, a chattel mortgage by a corporation without an affidavit of good faith is void as to a receiver for creditors, who was appointed on insolvency and took possession of the mortgaged property before the mortgagee or any person had acquired a valid lien thereon; as the property is a trust fund for creditors in custodia legis, and no creditor could thereafter obtain a preference over others.</p>