Van Houten v. Dainty Quality Laundry Corp.

Application is made by Roseville Wet Wash Laundry, holder of a chattel mortgage covering assets of the above named insolvent defendant corporation, for leave to foreclose. Counter application is made by the receiver for an order to sell the assets free and clear of the lien of the chattel mortgage; on the ground that the legality of the mortgage is attacked and the assets are likely to deteriorate.

The attack made by the receiver on the validity of the chattel mortgage is threefold — (1) that the mortgage was not recorded immediately as required by statute; (2) that the affidavit as to the…