Garrett & Co. v. Mercantile Nat. Bank of Miami Beach

HUTCHESON, Circuit Judge.

The proceeding was in bankruptcy on a petition of creditors, to set aside a chattel mortgage on cases of wine, part of bankrupt’s stock, and to recover payments made on account thereof. The claim was that the mortgage was void because the mortgagor was allowed to remain in possession of the wine and to dispose of it in the usual course of business. The defense was a denial that this was so and an affirmative claim; that at the time and as a part of the agreement for the loan, it was distinctly agreed and understood; that the mortgagor was not to be in possession of…