Bank of Hazlehurst v. Goodbar & Co.
Bank of Hazlehurst v. Goodbar & Co.
Opinion of the Court
delivered the opinion of the court.
It is the misfortune of the appellant that in the security it accepted from its debtors was included the mortgage of the stock of goods and store accounts, under a contemporaneous ■oral agreement by which the debtors were permitted to continue their mercantile business, using the mortgaged stock of goods therein, selling the same, and reinvesting the proceeds. Under a long line of decisions, mortgages of this character have been held fraudulent and void as to other creditors. Harman v. Hoskins, 56 Miss., 142; Joseph v. Levy & Co., 58 Miss., 845; Britton & Mason v. Creswell, 63 Miss., 394; Tallman & Co. v. Tuttle Bros., 65 Miss., 495.
And, whether the agreement appears in the instrument or is shown by extraneous evidence, the same result will follow and the instrument be condemned. Britton & Mason v. Creswell, supra.
Decree affirmed.
Reference
- Cited By
- 6 cases
- Status
- Published
- Syllabus
- Fraudulent Conveyances. Merchants’ deed of trust. Stock of goods. Retention of possession. Continuance of business. The deed of trust of an insolvent merchant, conveying his stock of goods and store accounts, is void as to creditors, when he is permitted to continue the business, using and selling the goods, and reinvesting’ the proceeds, under a parol agreement cotemporaneous with the execution of the deed. Roman v. RosMns, 56 Miss., 142; Joseph v. Levy, 58 Id., 845; Britton & Mason v. Greswell, 63 Id., 394; Tallman & Co. v. Tuttle Bros., 65 Id., 495, cited.