Felbel v. Jackman

This case presents directly the question whether the assignee for the benefit of creditors of a corporation can raise the question that a chattel mortgage made by that corporation to secure the payment *944of a note was invalid, illegal and void for failure of compliance with the statute* that requires the consent of not less than two-thirds of the capital stock to such mortgage. It seems that this precise question has never been decided by the Court of Appeals (See Matter of Progressive Wall Paper Corp., 230 Fed. Rep. 171, 174, 176), and that the reasonings of other courts upon this question are…