Page:Federal Reporter, 1st Series, Volume 7.djvu/849

 NAT. SHOK <& LEATHEB BANK 07 AVBU£N V. SMALIi. 837 �National Shob & Leathbr Bank of Aubuen, and othera, V. Small, Assignee, etc., and others. �(District Court, V. Maine. June, 1881.) �1. Negotiabu! PAPEE—HoLDBE&—SirBBoaATioN—lNDOKSEBS— Chat- �tel MOETGAOE — iNSOLVBNCr. �Where the makers and indorsers of negotiable paper are insolvent, the holders thereof may, upon the principle of subrogation, avail themselves of the rights of such indorsers arising under a ohattel mortgage given them by the makers to secure them against loss because of their liability as indorsers. �2. Chatted Moetgagb dp Aptee-Acquieed PEOPEETr— Moetgagbes �— QBNEBAIi CeEDITOBS. �In equity the right of mortgagees in after-aoquired property under a chattel mortgage covering such property, as well as stock in haud, is superior to that of general creditors of the insolvent mortgagors. �3. SamE— NeGIiECTIHG to RBCOED BEFOEE the INSOLVENCT of THE �MOBTGAGOES. �This right is not def eated by the neglect of the mortgagees to record their mortgage before the mortgagors became insolvent. �In Equity. �Wehb e Haskell, for plaintiffs. �Wm. L. Putnam, for defendants. �Fox, D. J. This bill is instituted by two national banks located in Androscoggin county, in this district, against L. L. Small, the assignee, under the insolvent law of this state, of the estates of Joshua M. and Mary A. Wagg, and Nathan- iel I. Jordan, assignee of Samuel P. Irving and Hartwell K. Wagg, eopartners in the shoe business at Auburn, under the style of Irving & Wagg, praying to be subrogated to the rights of Joshua M. and Mary A. Wagg under a certain chattel mortgage made and executed to them by Irving & Wagg on the tenth of July, A. D. 1879, to secure said Joshua M. and Mary A. Wagg the payment of certain sums loaned by them to Irving & Wagg, and also to save them harmless from all liability on account of any indorsements made or to be made by them for the benefit of said Irving & Wagg; the complainants having afterwards discounted for Irving & ��� �