Chattel mortgage

“ But the term mortgage used in the statutes does not import or imply that a seal is necessary. In regard to chattels, it is a mortgage, and not a deed of mortgage, that is required. The distinction between real and personal property and between the means which are necessary to affect them is well settled. Personal property, according to the common law, could always be transferred or incumbered without the use of a deed for that purpose. A seal has never been held necessary to the validity of a bill of sale. A chattel mortgage is only a bill of sale with a defeasance incorporated in it. ”

“ Whatever may be the rule with regard to general assignments for the benefit of creditors, there can be no doubt that in cases of chattel mortgages (and the instrument in question, by whatever name it may be called, is in reality a chattel mortgage) the reservation of a surplus to the mortgagor is only an expression of what the law would imply without a reservation, and is no evidence of a fraudulent intent. ”

“ Accordingly, the actual owner of personal property creating an interest in another, to whom it is delivered, if desirous of preserving a lien on it, must comply with the provisions of the Chattel-Mortgage Act. ”

“ Loans secured by chattel mortgage bring higher rates, because the chattels involved are a less certain means of payment than landed estate. Loans secured upon unproductive lands, whether in prospective farms or city lots, are made at high rates, not only because these lands fail to furnish in themselves the means of interest payment, but because they represent the speculative energy of their owners with unmeasured risk. All these variations and fluctuations are found in every community, and grow out of the natural wants of borrowers and the natural feelings of lenders. ”

“ Plaintiff, on or about June 16, 1905, and also on or about September 30, 1905, notified the defendant of the execution and filing of the chattel mortgage, and that the plaintiff claimed the property under the title thereby vested in it, and claimed the right of possession because of the default by the mortgagor in the conditions thereof, and the defendant at all times well knew of the existence and filing of the chattel mortgage, and did not at any time dispute the validity thereof. ”

“ The mortgage is sustained in such cases 'upon the ground that such sale and application of proceeds is the normal and proper purpose of a chattel mortgage, and within the precise boundaries of its lawful operation and effect. ”

“ When goods and chattels remain for five years in the possession of a person, or those claiming under him, to whom a pretended loan thereof has been made, they shall be the property of such person, unless a reservation of a right to them is made to the lender in writing, and the instrument recorded within six months after the loan is made, in the recorder's office of the county where one or both of the parties reside, or unless such instrument is filed as provided by law with respect to chattel mortgages. ”

“ Rose repeated willingly.
“When you get your money for the stock put it into mortgages—first mortgages, not seconds. Let that be a principle with you. Many a holder of a second mortgage has been left to hold the sack. You must remember that the first mortgage comes in for the first claim after taxes, and if the foreclosure doesn't bring enough to satisfy more than that, the second mortgage is sleeping on its rights.” ”

“ Stocks would more rarely answer it, being more liable to the fluctuations in price caused by misfortune or the ordinary vicissitudes of business. Mortgages on real estate, however, would not be admissible, except when held as a security, collateral to some other which is more easily convertible, for even when the mortgaged property is so ample and stable as to insure the goodness of the mortgage, the conversion of the mortgage into cash by sale is not always easy, and is especially difficult at those times when the bank most needs to have all its resources at command. ”

“ In the opinion the court said: 'But there are features engrafted on this mortgage which are not only to the prejudice of creditors, but which show that other considerations than the security of the mortgagees, or their accommodation even, entered into the contract. Both the possession and right of disposition remain with the mortgagors. They are to deal with the property as their own, sell it at retail, and use the money thus obtained to replenish their stock. There is no covenant to account with the mortgagees, nor any recognition that the property is sold for their benefit. ”

“ If there is money left over it is paid to the mortgagor, whose interests in the property are then at an end.
Many people, not familiar with business methods, are inclined to regard a mortgage as something of a disgrace, when, as a matter of fact it is a most usual and honorable means of raising money for the securing of a home or the conducting of a business.
Nearly all of the great railroads of the country have been built by the sale of the mortgage bonds, which are usually renewed when due, and are sought out as a safe and sane form of investment. ”

“ In spite of the example of practically every nation in Europe for generations, the lending of money on mortgage in America still remains largely a mere brokerage business unrestricted by proper governing laws, either by individuals or corporations, while mortgages continue to be drawn up for three or five years, when experience shows that the average life of a loan is far in excess of that period and needs to be renewed time and again, with added expense to the debtor and trouble for the creditor. ”

“ Jasper asked, in a tone of friendly sympathy and concern.
“Yes, sir; we fear there is danger of foreclosure, should the holder be so inclined; for we lack the means to pay off even the interest that is due.”
“Don’t be uneasy; I trust that danger may be readily averted,” returned the doctor, cheerily; “doubtless the money to pay off the whole indebtedness can be borrowed, the lender being 180 secured by a new mortgage; and I dare say Captain Charlton will be able to arrange the business for you in a satisfactory manner, finding a mortgagee who will not care to hurry you unduly for payment.” ”

“ Working with the Congress, the regulatory agencies, and the financial community, my Administration has brought about an expanded and steadier flow of funds into home mortgages. Deregulation of the interest rates payable by depository institutions, the evolution of variable and renegotiated rate mortgages, development of high yielding savings certificates, and expansion of the secondary mortgage market have all increased housing's ability to attract capital and have assured that mortgage money would not be cut off when interest rates rose. ”

“ Under the earlier law the purchaser, who was likely to be the plaintiff mortgagee, could go into possession upon the confirmation of the sale, and keep the rents and profits during the years allowable for redemption. Today this privilege is withdrawn, and for another four years the possession of the delinquent owner is unaffected by the sale. A minimum of six and a half years is thus the total period during which the holder of the mortgage is without an effective remedy. There is no enforceable obligation in the interval to pay installments of the principal or even the accruing coupons. ”

“ If that property is already subject to mortgages or other liens, the general mortgage does not displace them, though they may be junior to it in point of time. It only attaches to such interest as the mortgagor acquires; and if he purchase property and give a mortgage for the purchase-money, the deed which he receives and the mortgage which he gives are regarded as one transaction, and no general lien impending over him, whether in the shape of a general mortgage, or judgment, or recognizance, can displace such mortgage for purchase-money. ”

“ Real estate mortgages and leases are common examples of chattels real. Chattels personal embrace all personal property other than chattels real. Every thing subject to ownership not connected with the land is included in the classification of chattels personal. Promissory notes, personal apparel, furniture, tools and animals are common examples. Chattels personal are of a tangible, or of an intangible nature. They are mere rights, or they are things which may be handled and used. A promissory note, a contract, or a mortgage is a right as distinguished from a thing in possession. ”

“ The mortgagor, after condition broken, has no right in law or equity to the possession of the mortgaged property, unless it be so expressed in the mortgage. If it be personal property, it is everyday practice for the mortgagee, after condition broken, to seize the goods and chattels and hold them until the debt be paid, or to sell in satisfaction of the debt. If the mortgagor refuse to deliver possession on demand, the mortgagee can recover it by replevin, and this is often done. ”

“ If the interest which should be paid half-yearly remains unpaid at the end of a year, the mortgagee has a right to be impatient, has he not?"
"Certainly he has."
"Well, then, on fait un commandement tendant de saisie immobiliere, viz: The mortgagee gives a notice that the property shall be put up for sale. Then it is put up for sale, and in most cases the mortgagee buys it in. Here, certainly, no competitors in the mere business way would vie with Louvier; the mortgage at three and a half per cent. covers more than the estate is apparently worth. Ah! but stop, M. le Marquis ”

“ All mortgage bonds possess by law a lien upon the property pledged to secure them. Upon default in repayment of principal, and usually also upon default in payment of regular interest, their owners have the right to sell the pledged property at auction and to recoup themselves from the proceeds. After the underlying bonds have been satisfied the selling price is applied as far as it will go to the settlement in full of mortgages in the order of their issue; while the stock, representing the owners of the property, takes what is left. ”

“ In the first place, the mortgage being a valid and effective security for the bondholders of prior date, they present the superior equity to have the property in question applied to the discharge of the bonds. It is true, if the property covered by the mortgage constituted a fund more than sufficient to pay their demands, the court might compel the prior encumbrancer to satisfy the execution, or, on a refusal, the mortgage having become forfeited, compel a foreclosure and satisfaction of the bond debt, so as to enable the judgment creditor to reach the surplus. ”

“ The baron has five-and-forty thousand dollars' worth of promissory notes. Why do you keep them when they pay so small an interest? If you were, instead, to buy a good mortgage at five per cent, you would pay four per cent to the Joint-stock Company, and one per cent. would be your own; in other words, a yearly addition of four hundred and fifty dollars. But you might make a better thing of them than that. There are many safe mortgages which are offered to sale for ready money, at a great profit to the purchaser. ”

“ So we are going to be unveiling a series of plans to help not only homeowners who are at the brink of foreclosure, but there are a lot of homeowners who are making their mortgage payments every day, but they've seen the value of their homes decline so badly that now their mortgage is more than the value of their home -- which means that even when interest rates are low, it's very hard to refinance your home to take advantage of those low rates because a bank will say, well, you actually owe more than the home is worth. ”

“ This company, as consolidated, at once determined to raise a new loan of a million of dollars, to be used mainly for the purpose of building the Atchison Branch road, on which but little, if any, work had been done. As a security for the bonds of this loan, they made another mortgage, which was a first mortgage on the Atchison Branch, and a second mortgage on the main line. ”

“ The buyer, however, must exercise great care and good judgment. Should there be collusion between the loaning agent and the land-owner, the money advanced may be largely in excess of the actual property value. Villages with less than a dozen houses are often the sites of investment companies doing business under pretentious names and offering mortgage investments at interest rates which by the local conditions are impossible. One of the devices of these enterprising companies is to offer their own guarantees as to both principal and [236] interest of all mortgages negotiated by them. ”