Fogle v. General Credit, Inc.

RUTLEDGE, Associate Justice.

The principal question presented is whether a recorded chattel mortgage given by an automobile dealer to a finance company, which left the car in the dealer’s possession with authority to offer it for sale in the regular course of business but not to complete a sale until the mortgage lien should be satisfied, is valid as against a purchaser having no actual knowledge of the mortgage.

The buyer and the bank which assisted him to finance the purchase were plaintiffs in the trial court. They sought a decree directing the defendant to deliver to them the certificate of…