Netzorg v. National Supply Co.

Citations

• 18 Ohio C.C. Dec. 112
• 7 Ohio C.C. (n.s.) 461
• 1905 Ohio Misc. LEXIS 483

Syllabus

<p>CHATTEL MORTGAGES — SALES.</p> <p>Haynes, Parker and Wildman, JJ.</p> <p>1. Mortgage of After-acquired Chattels is a Mere Executory Contract for a Lien.</p> <p>The holder of a mortgage of after-acquired chattels has no lien upon such property until he has obtained possession of the same; such mortgage at most is no more than an executory contract for a lien on such after-acquired property which may or may not be executed by the mortgagor.</p> <p>2. A Sale is Good as against a Mortgage of After-acquired Chattels, even though Purchaser Had Notice of Mortgage.</p> <p>A sale of personal property will confer title good as against a mortgage purporting to cover the same, but executed before the mortgagor had title thereto, even though the vendee had knowledge of the existence of the mortgage at the time of making the purchase.</p> <p>,3. MORTGAGE OF A “STRING OF TOOLS” WILL NOT COVER NEW TOOLS BOUGHT TO Take the Place of Others Destroyed.</p> <p>A mortgage on a chattel will be held to cover additions made to it by way of repair, provided the integrity of the article remains; but this rule will not be extended, in the ease of a mortgage of a “string of tools” used in sinking oil wells, to cover after-acquired appliances purchased to take the place of others which have been worn out.</p> <p>[Syllabus approved by the court.]</p>