Mantel v. Landau

The bill is filed by the assignee for the benefit of creditors of Kentz Drug Stores, Inc., to set aside a chattel mortgage made by the corporation to the defendant, Jacob Landau. The mortgage is attacked primarily on the ground that the affidavit of consideration annexed thereto does not truthfully state the consideration as required by R.S. 46:28-5.

In October, 1941, Kentz Drug Stores arranged to borrow from Landau the sum of $10,000 and to pay for the loan, besides interest at six per cent., a premium or bonus of $2,500. The debt was to be secured by a chattel mortgage in the sum of $12,500,…