Dealers Discount Corp. v. Vantar Properties, Inc.

Plaintiff, assignee of a chattel mortgage, moves for summary judgment in an action to foreclose same. The defendant purchased the chattels securing the mortgage at a trustee’s sale in bankruptcy proceedings, the sale being subject to certain liens, including the chattel mortgage in question.

*50The defendant challenges the validity of said mortgage on the initial ground that said chattel mortgage was not issued in conformity with subdivision 1 of section 16 of the Stock Corporation Law because of the absence of the necessary consent of stockholders and the failure to properly file same. There is…