Patnott v. Simpson & Co.

WILBUR, Circuit Judge.

This is an appeal from an order in bankruptcy directing that the receiver in bankruptcy pay to the appellee the amount due upon its chattel mortgage from the proceeds of the receiver’s sale of a stock of merchandise and fixtures cov ered by tbe mortgage. Tbe question presented by the appeal of tbe trustee in bankruptcy is as to tbe validity and effect of tbe mortgage as against tbe mortgagee’s creditors.

Tbe mortgage was dated June 12, 1928, but was executed and recorded July 5,1928, to secure $2,800 already owing to tbe appellee and an additional loan of $1,200 then…