Bank of Sturgeon v. Stewart

STONE, Circuit Judge.

These are appeals from two orders which denied the force of liens to two chattel mortgages to secure notes given by a bankrupt.

While the claims, notes and mortgages in the two appeals are entirely different, they are against the same bankrupt and may be treated as presenting the same legal question. Both indebtednesses are bona, fide and the security, as to each, is insufficient to satisfy the particular debt. The mortgages were promptly recorded and no concealment existed. At the time the mortgages were given, the mortgagees knew the bankrupt was insolvent. The bankrupt…