Rawlins County State Bank v. Walters

Citations

• 92 Kan. 391
• 140 P. 864
• 1914 Kan. LEXIS 241

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Proceeds from Sale of Chattel-mortgaged Property — Ccm Not be Pursued into Hands of Innocent Third Party. A mortgagee can not pursue the proceeds of a sale of mortgaged personal property, made by the mortgagor, and received and applied by his creditor in good faith in payment of a valid debt, where the person so receiving the proceeds has no knowledge of the mortgage and is not chargeable with any notice of its existence.</p> <p>2. Same. In the situation stated above, the filing of the chattel mortgage in the proper office does not impart constructive notice to the creditor who receives and applies the proceeds of the sale, but has no lien upon or right to the mortgaged property.</p>