VanAusdall v. McCanon

MAJOR, Circuit Judge.

This is an appeal from a decree of the District Court, entered Jul}- 6, 1942, holding invalid a chattel mortgage, executed March 10, 1938, to secure a certain promissory note in the principal amount of $10,000.00, wherein National Mills, Inc., a corporation (subsequently the Bankrupt) was the mortgagor and First United Finance Corporation (hereinafter referred to as the Finance Corporation) was the mortgagee. On November 5, 1938, the mortgage and note secured thereby were for a consideration of $8,162.00, assigned to appellants (hereinafter referred to as Claimants). At…