Page:Federal Reporter, 1st Series, Volume 7.djvu/813

 CE00K8 V. STUABT. . ,801 �doctrine of the supreme court of the TJnited States controla upon any question of general jurisprudence not depending for its support upon any provision of state law. .... ^ �4. ASSIGNJEB IN BANKKtTPTCT — FbAUDTTUENT CONVETANCBS OB' BaNE- BtlPT. �The assignee in bankruptcy of the mortgagor has all the rights of creditors to attack conveyances made hy the bankrupt in fraud of his creditors. �In Equity. �MgGbaby, g. J. The complainant, as assignee in bank» ruptcy of A. J. Nutter, bankrupt, and representing the cred- itors of the banki'upt estate, brings his bill to set aside two certain mortgages executed by the bankrupt upon a stock of merchandise, and to subject the same to the payment of the debts of the estate. The mortgage is assailed upon the ground that the mortgagor retained the possession of the goods mortgaged and used, and disposed of the same as his own ; and upon the further ground that the mortgage was not recorded until after the debts represented by complain- ant were contracted. One of the mortgages expressly pro- vided that the mortgagor might dispose of the goods in the usual course of business ; the other contained no such pro- vision, but it appears that there was in fact no change of possession, and that the mortgagor, after the execution of both mortgages, and with the assent of the mortgagees, re- tained the possession and continued to carry on the business, buyiug and selling in the usual course of trade for about one year before the mortgages were recorded, and for a little more than a year before possession was taken under them. The debts represented by the complainant were contracted while the mortgagor was in possession and before the record- ing of the mortgages, and the creditors had no notice of any encumbrance upon the property. �The statute of lowa provides as follows : �" Ko sale or mortgage of pe'rsonal property, where the vendor or mort- gagor retains actual possession thereof, is valid against existing credit- ors or subsequent purchasers without notice, unless a written instrument conveying the same is executed, acknowledged like conveyances of real estate, and flled for record with the recorder of the county where the holder of the property resides." Code 1873, § 1923. v.7,no.9— 51 ��� �