Wells, Fargo & Co. v. Alturas Commercial Co.

Citations

• 6 Idaho 506
• 56 P. 165
• 1899 Ida. LEXIS 17

Syllabus

<p>Chattel Mortgage — Recording—Actual Notice. — A junior mortgagee, wlio takes his mortgage with actual notice of the existence of another mortgage upon the same property, and. with the understanding that the lien of his mortgage is subject to that of such iormer mortgage, is not entitled to precedence on the grounds that such former mortgage was not filed of record in the proper county recorder’s office prior to the time that his mortgage was filed in such office.</p> <p>Same — Good Between Parties — Good Against Junior Mortgagee Who Has Actual Notice. — A chattel mortgage upon a stock of merchandise, under the terms of which the mortgagor retains possession and sells in the usual course of trade, applying proceeds of sale less expenses thereof to the mortgage debt, is valid as between the parties and privies thereto, and as against junior mortgages of the same kind, taken with actual notice of such former mortgage.</p> <p>Same — Estoppel.-—A mortgagee who takes a mortgage upon a stock of merchandise, which mortgage authorizes the mortgagor to retain possession of the mortgaged chattels, and sell the same in the usual course of business, and who knows of a similar, prior existing mortgage upon the same chattels, and agrees that his mortgage lien shall he subject to the lien of such former mortgage, is estopped from questioning the validity of such former mortgage.</p> <p>(Syllabus by the court.)</p>