Robinson v. Elliott

Citations

• 89 U.S. 513
• 22 L. Ed. 758
• 22 Wall. 513
• 1874 U.S. LEXIS 1285

Syllabus

<p>1. Under the Statute of Frauds in Indiana, which enacts in.</p> <p>“Section 10. That no assignment of goods by way of mortgage shall bé valid against any other person than the parties thereto, when such goods are not delivered to the mortgagee, or assignee, and retained by him, unless such assignment or mortgage shall be duly recorded — ”</p> <p>And in</p> <p>“Section 21. That the question of fraudulent intent in all cases Bhall bo deemed a question of fact — ”</p> <p>A mortgagor of chattels personal may, if the transaction be fair and the mortgage made by him be duly recorded, retain possession of personal chattels.</p> <p>2. But the effect of the statute is not to make every recorded mortgage, which prior to the statute would have been held fraudulent in law, primt facie valid.</p> <p>3. The recording of the mortgage contemplated by the statute was meant as a substitute for possession, but was not meant to protect a mortgage from all illegal stipulations contained in it.</p> <p>4. Hence, where a trading firm in a city in Illinois owing money evidenced by a series of notes, coming due from time to time for some months in advance, made a mortgage of their stock of goods, the mortgage containing this clause:</p> <p>“And it is hereby expressly agreed, that until default shall be made in the payment of some one of said notes, or some pnper in renewal thereof, the parties of the first part may remain in possession of said goods, wares, and merchandise, and may sell the same as heretofore, and supply their plaoes with other goods, and the goods substituted by purchase for those sold shall, upon being put into said store, or any other store in said city where the same may be put for sale by said parlies of the first part, be subjected to the lien of this mortgage — ”</p> <p>The instrument then concluding with powers to the mortgagee, upon any default, to have the right to enter into said store of the firm and take possession of a sufficient amount of goods to satisfy,