the time; and it was held that the mortgage was a valid security. Potter et al. v. Coggeshall, 4 N. B. R. 73; 19 Fed. Cas. 1138.

There was held to be no provision in the Bankrupt Act of 1867 which invalidates a security, otherwise valid, because it was in the form of an absolute deed when it was in fact given and accepted as a mortgage. Gaffney's Assignee v. Signaigo, 1 Dill. 158; 9 Fed. Cas. 1026.

A court in bankruptcy will follow the decisions of the supreme court of the state in deciding upon the validity of an unrecorded chattel mortgage against creditors with notice. Cragin v. Carmichael et al., 2 Dill. 519; 6 Fed. Cas. 706.

The mortgagee of personal property brought an action in trover in a state court against the purchaser from the assignee in bankruptcy for goods which the assignee had sold without an order of the court. The court expressed doubt whether he had any power to interfere, but said that if he had he would not restrain the prosecution of the suit in the state court. In re Cooper, 16 N. B. R. 178; 6 Fed. Cas. 469.

A chattel mortgage to secure money advanced to a firm was executed by one partner. The other partner subsequently gave his assent. The mortgage contained a clause making the mortgagors agents of the mortgagee to sell the goods and account for the proceeds. The mortgage was held to be valid as against the assignee in bankruptcy of the mortgagors. Haukins v. First Nat. Bank, 1 Dill. 462; 11 Fed. Cas. 479.

There were two mortgages upon certain property in the form of trust deeds. It was held that the bankruptcy of the second mortgagee did not prevent the execution of a power of sale in the first mortgage. Long v. Rogers et al., 6 Biss. 416; 15 Fed. Cas. 828.

A mortgagor, after condition broken, went into bankruptcy. When the marshal and assignee in bankruptcy took possession of certain timber, etc., which had been severed from the mortgaged premises, the mortgagee notified them that he claimed them under his mortgage. Held, that the marshal and assignee must be regarded as taking possession for the mortgagee, so that his rights were saved under the laws of Vermont. In re Bruce, 9 Ben. 236; 4 Fed. Cas. 467.

Under the Act of 1867, it was held that a chattel mortgage otherwise valid is good against an assignee in bankruptcy, notwithstanding that it was not recorded as required by the law of the state. Coggeshall v. Potter et al., Holmes, 75; 6 Fed. Cas. 3.

The lien of a chattel mortgage will be recognized in proceedings in bankruptcy when it was filed after the commencement of proceedings, but before the appointment of an assignee, there being no judgments against the bankrupt. In re Collins, 8 Ben. 59; 6 Fed. Cas. 112.

When the mortgagee of a stock of goods buys them under circumstances which render the transaction void under the Bankruptcy Act, his rights as mortgagee are not impaired by the transaction. In re Kahley, 2 Biss. 383; 14 Fed. Cas. 71.

C. recovered a judgment against the bankrupt on the 5th of November, 1866, but did not record it in the county clerk's office until the 16th of

October, 1867. S. had a mortgage on the land executed and recorded on the 7th of April, 1867. The debtor and mortgagor having been adjudged bankrupt, the court decided, under the laws of Texas, that the mortgage lien had priority over that of the judgment. In re Lacey, 4 N. B. R. 62; 14 Fed. Cas. 920.

To give a mortgagee, under the laws of South Carolina, a right to the rents and profits of the mortgaged premises, it is not necessary for him to make an actual entry when they have passed into the hands of an assignee in bankruptcy. In re Bennett, 2 Hughes, 156; 3 Fed. Cas. 206. The fact that a bank took a mortgage to secure an indebtedness within two months before bankruptcy does not prove that it regarded its debtor as insolvent, or that the mortgagor contemplated bankruptcy. McLean. v. LaFayette Bank et al., 3 McLean, 587; 16 Fed. Cas. 264 (1846).

An assignee in bankruptcy cannot recover the value of mortgage personalty where the mortgagee took possession before the filing of the petition, notwithstanding the mortgage was not recorded in compliance with the laws of the state. Miller v. Jones, 15 N. B. R. 150; 17 Fed. Cas. 322. Where the principal and surety of a debt both become bankrupt and the surety is secured by a mortgage, the creditors to whom the surety is bound can require the mortgaged property to be applied to the discharge of their debts. If, however, the surety is discharged, or loses his lien, the creditors will have no specific lien. Ex parte Morris, 2 Low. 424; 17 Fed. Cas. 783.

A mortgage given long before the commencement of bankruptcy proceedings, but not recorded until less than two months prior thereto, was held not to be fraudulent on account of the failure to record. Curry v. McCauley, 20 Fed. Rep. 583.

A mortgage given in substitution for a former mortgage, and for credit and advances made in pursuance of an agreement that the mortgage should be given, is valid, although the mortgagor may have been insolvent at the time, and the mortgagee may have known that fact. Douglass v. Vogeler, 6 Fed. Rep. 53.

A chattel mortgage was recorded on the day before the petition in bankruptcy was filed; but it was shown that the consideration did not pass until the mortgage was recorded. The transaction being in good faith, the mortgage was upheld as a lien upon the bankrupt's property. In re Perrin et al., 7 N. B. R. 283; 19 Fed. Cas. 261.

A court granted a petition of the assignee of a chattel mortgage made for a present consideration on the 4th of August, but not filed until the 8th of December, to compel the assignee in bankruptcy and the mortgagee to pay over the proceeds of the mortgaged property. The proceedings in bankruptcy were commenced two months after the filing of the mortgage and one month after the mortgagee had taken possession of the property. In re Barman, 14 N. B. R. 125; 2 Fed. Cas. 831.

When an assignee sells property subject to two mortgages, the first mortgagee is as much entitled to the payment of principal, interest, and costs, as if the mortgage had been foreclosed in court; but when money

was paid to release the mortgaged premises from the wife's dower, the expenses should be apportioned between them. In re Wartenbach, 11 N. B. R. 61; 2 Fed. Cas. 956.

A bankrupt gave a mortgage on five bales of cotton to a creditor who already had a lien on 320 acres of land. The register ruled that the mortgage was a waiver of the prior lien, but the district court reversed the register and ordered the assignee to sell the land and satisfy the lien. In re Hutto, 3 N. B. R. 787; 12 Fed. Cas. 1094.

An assignee in bankruptcy cannot maintain an action of trover to recover the value of personal property which has been taken possession of by a mortgagee before the commencement of the proceedings in bankruptcy. Jones v. Miller, 17 N. B. R. 316; 13 Fed. Cas. 994.

A mortgage given more than five months before bankruptcy to secure future advances was held to be good as to all advances made in good faith more than two months before the filing of the petition, and as to those made within that time if they were loans of actual value made in good faith. Crampton v. Tarbell, 6 Fed. Cas. 745.

On the principle that the assignee in bankruptcy takes the property of the bankrupt subject to all valid liens, it was held in Massachusetts that a mortgage of personal property is good against the assignee in bankruptcy, although it had not been recorded at the date of the commencement of the proceedings. Ex parte Dalby, 1 Low. 431; 6 Fed. Cas. 116. The bankrupts had borrowed a sum of money and secured it by a mortgage of all the machinery on their premises, and also all the machinery that they might purchase and all stock that they might manufacture during the next four years. On the 16th of July, 1842, the mortgagee, by his agent, took possession of the machinery in the factory when the mortgage was made, and also tools and stock purchased and made thereafter. On the 26th of August of the same year, the debtors filed their petition in bankruptcy, and an assignee was subsequently appointed. The assignee applied to the court for an order authorizing him to take the property from the possession of the mortgagee. It was held that the possession taken by the mortgagee gave him a lien that was protected by section 2 of the Act of 1841. Mitchell v. Winslow et al., 2 Story, 630; 17 Fed. Cas. 527 (1843).

In order to entitle the mortgagee to obtain leave to foreclose his mortgage in another court, he must prove his debt in bankruptcy as a secured debt. His petition must allege this fact; also date of proof and amount of debt. The mortgage and mortgaged property must be fully described, and the facts stated whether there are other and what incumbrances upon such property, fully describing the same; that the estate has no ultimate interest in the mortgaged property, and a statement of the actual value thereof in order that the court may be informed whether there is a surplus of value over other incumbrances; and the petition must be signed and duly verified. In re Sabin, 9 N. B. R. 383; 21 Fed. Cas. 119 (1874).

Where mortgaged property has been legally conveyed by the bankrupt

before the commencement of bankruptcy proceedings, so that no right or claim has passed to, or been set up by the assignee in bankruptcy, no application to the bankruptcy court for leave to foreclose is necessary. Ibid.

Liens by Mortgage, when Void.

The property of a bankrupt passes to his assignee free from the lien of a mortgage which is void under the laws of the state. Wait v. Bull's Head Bank, 19 N. B. R. 500; 28 Fed. Cas. 1338.

The court held a chattel mortgage of a stock of goods to be void when it allowed the mortgagor to retain possession, and sell the goods and buy others to replace those sold. Smith v. Ely et al., 10 N. B. R. 553; 22 Fed. Cas. 538.

A mortgage given partly to secure an existing debt and partly to secure a present credit, the mortgagee knowing that the mortgagor was embarrassed, was held to be wholly void. Tuttle v. Truax, 1 N. B. R. 601; 24 Fed. Cas. 397.

To make good the lien of a mortgage of personal property, which is otherwise invalid, the mortgagee must take possession of them without delay upon the maturity of the debt. In re Forbes, 5 Biss. 510; 9 Fed. Cas. 394.

A bill of sale to secure a debt in Massachusetts is regarded as a pledge, and cannot be registered as a mortgage. Ex parte Fitz, 2 Low. 519; 9 Fed. Cas. 185.

Held, under the laws of Vermont, that a mortgage is not fully made as against an assignee in bankruptcy until it is recorded. Bostwick v. Foster, 14 Blatchf. 436; 3 Fed. Cas. 958.

Judge Lowell held, under the circumstances of the case, that a mortgage given by a retail merchant, less than four months prior to bankruptcy, to secure money to pay an existing indebtedness, was void as against the assignee. Ex parte Mandell, 1 Low. 506; 17 Fed. Cas. 1.

It was held, under the laws of Wisconsin, that a mortgage of chattels is ineffectual to pass property acquired after its execution, and that as to such property the assignee in bankruptcy can hold it against the mortgagee. In re Eldridge, 2 Biss. 362; 8 Fed. Cas. 412.

The assignee of a mortgage given to indemnify a surety, who is himself a creditor and beneficiary of the trust so created, has no priority over other creditors secured in the same manner. In re Pierce et al., 2 Low. 343; 19 Fed. Cas. 629.

A bankrupt gave his attorneys a mortgage on a house after the entry of a decree declaring that it was not exempt as a homestead. The mortgagees were ordered summarily to release it. In re Boothroyd, 15 N. B. R. 364; 3 Fed. Cas. 895.

The silent partner of an insolvent firm conveyed all his interest to the active partner, and the latter mortgaged the whole stock to secure existing debts of the creditors of each. The transaction was held to be fraudulent. In re Waite et al., 1 Low. 207; 28 Fed. Cas. 1339.

The debtors, who were manufacturers of pianos, gave a mortgage to secure an existing debt with an agreement that they should remain in possession of the property and continue to carry on the business. The mortgage was held to be void as to other creditors. Wait v. Bull's Head Bank, 19 N. B. R. 500; 28 Fed. Cas. 1338.

A mortgage given to secure attorney's fees for drawing a petition and schedules in voluntary bankruptcy was held to be void under section 35 of the Act of 1867. The attorneys could prove their claim as unsecured creditors. In re Evans, 3 N. B. R. 261; 8 Fed. Cas. 835.

A mortgage given to secure previous indebtedness and also a loan, the proceeds of which were to be used in giving other creditors fraudulent preferences, the mortgagee having full knowledge of the facts, is void. Bucknam v. Goss, 1 Hask. 630; 4 Fed. Cas. 575.

To avoid a mortgage as a preference, it was necessary under the Act of 1867 that the proceedings in bankruptcy should be commenced within four months after it was executed. Hall v. Hayner et al., 3 Chi. Leg. News, 402; 11 Fed. Cas. 226.

Under the laws of New York a chattel mortgage, with an agreement that the merchant might retain possession of the property and make sales from time to time, retaining the proceeds, was held to be void, and a petition that the assignee in bankruptcy pay the proceeds of the property to the mortgagee was denied. In re Cantrell, 6 Ben. 482; 5 Fed. Cas. 31. A settlement by a debtor of a valuable residence upon his wife was set aside as a fraud on the Bankrupt Law of 1867. A mortgage of such property by the wife to secure bona fide loans was sustained; but a mortgage of same made to secure a prior and unsecured debt of the husband was set aside. Sedgwick v. Place, 12 Blatchf. 163; 10 N. B. R. 28; 21 Fed. Cas. 992 (1874).

A controversy arose between the assignee in bankruptcy and the bankrupt as executor of a decedent as to surplus moneys arising upon the sale of mortgaged premises. The referee found in favor of the assignee on the ground that the mortgage was void as against the creditors of the bankrupt. Held, that this proceeding was conclusive as to the validity of the mortgage. In re Dakin, 19 N. B. R. 181; 6 Fed. Cas. 1114.

Where a firm gave a chattel mortgage to a retiring partner on all its goods in stock or to be acquired by purchase, and it was agreed that it should not be recorded, the mortgage was held to be void as to subsequent creditors. In re Stephens, 3 Biss. 187; 22 Fed. Cas. 1275.

A chattel mortgage is void as against an assignee in bankruptcy if the mortgagor is allowed to retain possession of the goods and sell them. In re Forbes, 5 Biss. 510; 9 Fed. Cas. 394.

The debtor had given a mortgage to secure indorsements more than six months before the commencement of proceedings in bankruptcy. No money was paid by the mortgagee. Held, that the mortgage was not valid against the mortgagor's assignee, in bankruptcy. Sessions v. Johnson, 95 U. S. 347.

The debtor had borrowed of his wife the proceeds of a legacy to her,