Universal Dealers Co. v. Cromelin

On June 11, 1936, and again on September 4, 1936, Nolan Motor Company borrowed money from Universal Dealers Company, appellant herein, and gave as security therefor chattel mortgages1 of the same dates, each covering virtually all of its tangible assets. By the terms of the s.econd of these mortgages the borrower assumed the full obligation of the first; consequently, for the purposes of this case, it is the mortgage of September 4, 1936 with which we are concerned. On November 21, 1936, an involuntary petition in bankruptcy was filed against Nolan Motor Company; it was adjudged bankrupt on…