In re Zero Refrigerator Lines, Inc.

REEVES, District Judge.

The only question presented in this case is whether a chattel mortgage regularly executed and recorded lost its validity when the property affected or covered was sold to a third person with the knowledge and consent of the mortgagee.

The facts in the case are that on July 30, 1936, a partnership, being then the *663owner of certain property, executed a mortgage thereon to secure an indebtedness in the sum of $7,500. Such mortgage was recorded on the same day. On October 1, 1936, the property covered by the mortgage was transferred by the partners to the bankrupt, which…