Silvis v. C. Aultman & Co.

Citations

• 141 Ill. 632
• 31 N.E. 11

Syllabus

<p>1. Chattel mortrage—securing debt not maturing within two years. On August 1, 1887, a chattel mortgage' was given to secure a debt of $1941.25 from the mortgagor to the mortgagee, evidenced by five notes, all of the same date with the mortgage, the first for $250, payable December 1, 1887; one for $425, payable December 1, 1888; one for $428, payable December 1,1890, and one for $416.25, payable December 1,1891. The mortgage gave the mortgagor the right to retain possession until default of payment, but the mortgagee might take possession if he should feel insecure, etc. The mortgage was recorded October 3, 1887, and the two first notes were paid on August 1, 1889. An execution against the mortgagor was levied upon the mortgaged chattels: Held, that the mortgage was invalid and fraudulent in law as against the execution creditors making the levy.</p> <p>2. Under the Revised Statutes of 1845, a chattel mortgage securing a note or other evidence of indebtedness which did not mature until after the expiration of two years from the time of recording the mortgage, was good and valid for two years, though it authorized the mortgagor to retain possession of the mortgaged property until default in payment.</p> <p>3. But under the Mortgage act of 1874, as amended in 1887, which provides that a chattel mortgage shall be “valid from the time it is filed for record until the maturity of the entire debt or obligation, provided such time shall not exceed two years,” a different rule must prevail. The words “such time,” used in the proviso, refer to the period between the time of filing the mortgage for record and the maturity of the entire debt or all the notes secured by the mortgage, and the proviso-qualifies the statement that the mortgage shall be valid for the period aforesaid, and restrains or limits the generality of such statement to-cases where such period shall not exceed two years.</p> <p>4. The length of time during which the mortgage shall be valid is the period t