Law Commons^™

Sales - Chattel Mortgages Under The Bulk Sales Statutes

Michigan Law Review

Gessaman, who was a dealer in new and used automobiles, was indebted to the bank and other creditors. While so indebted, he executed and delivered to the acceptance corporation a chattel mortgage upon all the furniture, fixtures, equipment and supplies used in the business. Later the mortgagee took possession of the chattels without suit, and immediately afterward Gessaman was adjudged a bankrupt. The trustee, in behalf of the bank and other creditors, seeks to subject the chattels to a trust in the hands of the acceptance corporation upon the claim that the chattels were taken under a sale in violation …