Auto Owners' Finance Co. v. Coleman

The case involves a Massachusetts transaction the validity of which depends upon the construction of certain legislation in that state and of a mortgage included in the transaction. The transaction was between the plaintiff and one Rozman. He applied to the plaintiff for a loan of 1300 to be secured by a mortgage of the replevied automobile which he then owned. The loan was made, the plaintiff taking six dollars of its amount to pay for fire and theft insurance on the automobile. The mortgage was duly recorded. Thereafter Rozman sold the automobile without actual notice to the purchaser of…