Dorcas v. Hamiel

Plaintiffs, holders of a chattel mortgage given by Marion C. Hamiel, sought a declaratory judgment for the purpose of determining the rights of the respective claimants to the proceeds of the property in controversy. The trial court held the property in question was not in the “actual possession” as contemplated by section 556.3, 1954 Code of Iowa, the mortgage of plaintiffs was valid, and plaintiffs are entitled to have their secured indebtedness paid out of the proceeds of the sale of the mortgaged property before any of the general creditors participate in the funds received from the sale…