Page:United States Statutes at Large Volume 47 Part 1.djvu/1327

 72d C ONGRESS. SESS. II. CH. 128 . FE BRUAR Y 27, 1933 . CHAPTER 64 .-PLEDGE PLEDGE. SEC. 1367 . PLED GE, WHAT .-Pledge is a deposit of personal prop- Defined. erty by way of security for the performance of another act. 1303 SEC. 1361 . MORTGAGED PROPERTY MAY BE LEVIED uPON .-Personal maM ƒ bga levied upon, pro pe rty mortgaged may be ta ken under att ac hme nt or execution issued at the suit of a creditor of the mortgagor. SEC. 1362. ATTACHMENT AND EXECUTIONS ON MORTGAGED PERSONAL Attacbment and eae. PROPE RTY .-Before the property is so taken the officer must pay or cutions on . ten der to the mortgagee the amount of the mortgage de bt and interest or must deposit the amount thereof with the registrar of property, Provi so. payable to the order of the mortgagee : Provided, however, That when mortgage void, wh en an attachment or execution creditor presents to the officer a etc , indemnity bond. verified statement that the mortgage is void or invalid for reasons therein specified and delivers to the officer a good and sufficient indemnity bond in double the amount of the mortgage debt or double the v alue of the mor tgage d pro perty , as the o ffice r may dete rmine and require, the officer shall ta ke the property, and, in the c ase of an execut ion, sell it in the manne r pro vided by law. The bond shall be made to both the officer and the mortgagee and shall inde mnify them and each of th em for the taki ng of the prop- ert y aga in st los s, liability, damages, costs, and counsel fees. CROSS REFERENCE Measu re of s pecial owner' s damag e for convers ion, se e sect ion 161 8. Post, p.1333. SEC. 1363. APPLICATION OF PROCEEDS OF SA LE .-Whe n the prop erty Application of pro - is taken after payment or tender of deposit as provided for in section 1362, and is sold under process the officer must apply the proceeds of the sale as follows 1. To the repayment of the sum paid to the mortgagee, with interest from the date of such payment ; and 2. The ba lance , if any, in li ke ma nner as the pro ceeds of s ales under execution are applied in other cases. Wh en the pro perty is t aken after pres entat ion to the offi cer of the verified statement and bo nd mentioned in the proviso in section 1362 and is cold under process the officer must apply the proceeds of the sale as follows 1. To the satisfaction of the amount specified in the pr oc ess includ- ing interest and costs ; and 2. The ba lance , if any, in li ke ma nner as the pro ceeds of s ales und er execution are applied in ot her cases . SEC. 1364. CERTAIN SECTIONS NOT APPLICABLE TO MOR TGAGE OF CER- Desi gnate d sec tions TAI N SHI PS .-Sections 1356 and 1357 to 1359 do not apply to any not applicable o mO1t- mortg age of a s hip or par t of a shi p und er the fla g of the U nited Ante, p. 1302. States. SEC. 1365. CONTINUANCE OF LIEN OF MORTGAGE ON CROPS .- The l ien Continuance of lien of a mortgage on a growing crop continues on the crop after sever- ƒf mortgage on crops. ance, whether remaining in its original state or converted into another product, so long as the same remains on the land of mortgagor. SEC. 1366 . VALIDITY OF CERTAIN MORTGAGES .-Mortgages of per- Val id ity of c ertai n sonal prop erty, othe r tha n tha t men tione d in secti on 13 53, and m mortg ages not m ade in con formi ty wi th the pro visio ns of this sub- chapt er, are ne verth eless vali d bet ween the p artie s, th eir h eirs, legatees, and personal representatives, and persons who, before parti ng wi th va lue, have actua l not ice thereof.