Marquese v. Felsenthal
Supreme Court of Arkansas
Appeal from Ouachita Circuit Court in chancery. Charres W. Smith, Judge. 1. The mortgage is fraudulent and void. There was a secret agreement to secure and prefer the Camden Bank, thus allowing the debtor to make a show of assets and obtain a false credit. It was virtually taking a mortgage and withholding it from' record. Secret understandings have the effect of secret liens, and are condemned when they injure parties who have no knowledge of them.- 2 Verm. 261; 2 Johns.
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Appeal from Ouachita Circuit Court in chancery. Charres W. Smith, Judge. 1. The mortgage is fraudulent and void. There was a secret agreement to secure and prefer the Camden Bank, thus allowing the debtor to make a show of assets and obtain a false credit. It was virtually taking a mortgage and withholding it from' record. Secret understandings have the effect of secret liens, and are condemned when they injure parties who have no knowledge of them.- 2 Verm. 261; 2 Johns. Ch. 35; 7 B. Mon. (Ky.) 374; 6 Paige, 526; 105 IT. S. 100, 118; 73 Wis. 654; 41 N. W. Rep. 436 ; 67 Wis. 101; 30 N. W.…
1Opinion of the Court
McCain, Special Judge.
Eva Felsenthal, an embarrassed merchant, mortgaged her stock of goods to a trustee to secure a debt owing by her to the Camden National Bank. Her other creditors, who are the appellants herein, attack this mortgage.
n¿-rt¡^nnot assignment” 1. Appellants contend that the mortgage is really an assignment, and void for want of compliance with the assignment law. The general distinction between a mortgage and an assignment is well understood. The one is intended to secure, the other to satisfy, a debt. A mortgage contemplates a personal effort to pay the debt, or at least…
2Cases cited7 opinions
- Richmond v. Mississippi MillsSupreme Court of Arkansas · 1889
- Smith v. CraftSupreme Court of the United States · 1887
- Robson v. TomlinsonSupreme Court of Arkansas · 1891
- Fecheimer v. RobertsonSupreme Court of Arkansas · 1890
- Penzel Co. v. JettSupreme Court of Arkansas · 1891
2 more not listed; retrieve them via the Exa API.
3Cited by3 opinions
- Jack v. Craighead Rice Milling Co.Court of Appeals for the Eighth Circuit · 1948
- United States Fidelity & Guaranty Co. v. EdmondsonSupreme Court of Arkansas · 1933
- Ebbing v. HasslerSupreme Court of Arkansas · 1934