In re Burnett
District Court, N.D. Illinois
In bankruptcy. This was a petition by Peter L. Groot, a creditor, as holder of certain notes amounting to $3,000, and interest, secured by chattel mortgage on the property of the bankrupts, Evan Burnett & Evan Burnett, Jr., which, by consent of parties, had been sold by the assignee, and the proceeds brought into court to be distributed among creditors, according to priority.
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In bankruptcy. This was a petition by Peter L. Groot, a creditor, as holder of certain notes amounting to $3,000, and interest, secured by chattel mortgage on the property of the bankrupts, Evan Burnett & Evan Burnett, Jr., which, by consent of parties, had been sold by the assignee, and the proceeds brought into court to be distributed among creditors, according to priority. The petition prays payment in full out of the fund in court, by reason of the lien of the chattel mortgage, dated and acknowledged Dec. 11, 1872, and which had been duly recorded. The assignee objected that the chattel…
1Opinion of the Court
BLODGETT, District Judge.
I do not think the objection well taken, for the reason that the mortgagee had taken possession before any other person had acquired any lien or vested right, and, therefore, .the irregularity in acknowledging the mortgage is not material. But there is certainly room for grave doubt whether there is any such defect in the execution of this mortgage as is claimed. By the statute of this state (Rev. St. tit. “Chattel Mortgages,” § 2, it is provided that chattel mortgages to be valid must be acknowledged before a justice of the peace of the district where the mortgagor…
2Cases cited1 opinion
- Henderson v. MorganIllinois Supreme Court · 1861