In Re Leppert

BIGGS, Chief Judge.

The parties have stipulated the facts and the sole issue on this appeal is the validity of a chattel mortgage given by the bankrupt to the Morgan Company.

The mortgage covered personal property located on the premises of-the bankrupt. It was properly recorded in New Jersey prior to the bankruptcy. The assets encumbered by the mortgage were sold at public auction in the bankruptcy proceeding free and clear of the lien, the lien to attach to the proceeds. This course' was proceeded with over the mortgagee’s objection and the sale realized the sum of $868.84 to which the…