Page:United States Statutes at Large Volume 76A.djvu/712

–616– -616the giving of testimony by, witnesses, in the same manner, and with like effect, as in other cases. (b) If, after a hearing, the court is satisfied that it will be to the advantage of the estate, it shall make an order authorizing and directing the executor or administrator to borrow the money and to execute the note or notes, and, in a proper case, to execute the chattel mortgage, or to give other security by way of pledge or other lien, on personal property of the estate. The court, in its order, may: (1) direct that a lesser amount than that named in the petition be borrowed; (2) prescribe the maximum rate of interest and period of the loan; (3) require that the interest and the whole or any part of the principal be paid, from time to time, out of the whole estate or any part thereof. § 1744. Execution of notes and instruments of security (a) If the order issued pursuant to section 1743 of this title directs the execution of a chattel mortgage, pledge, or other lien, the executor or administrator shall execute and deliver a promissory note or notes for the amount and period specified in the order, and at not more than the maximum rate of interest specified in the order, and shall execute the mortgage, pledge, or other lien, setting forth therein that it is made by authority of the order, and giving the date of the order. (b) If the order issued pursuant to section 1743 of this title directs the negotiating of an unsecured loan, the executor or administrator shall execute and deliver a promissory note or notes, without security, for the amount and period specified in the order, and at not more than the maximum rate oi interest specified in the order. (c) Instruments executed and delivered under this section shall be signed by the executor or administrator, as such, and shall create no personal liability against the person so signing. § 1745. Effectiveness of obligations created under this subchapter (a) A chattel mortgage, pledge, or other lien made and delivered under this subchapter is effectual to mortgage, pledge, or subject to lien all the right, title, and interest which the decedent had in the property described therein at the time of his death or prior thereto, and any right, title, or interest in the property acquired by the estate of the decment by operation of law or otherwise, after his death. (b) Notes signed and delivered in the negotiation of an unsecured loan under this subchapter are effectual to create a valid obligation and debt against the estate of the decedent, and are payable out of the funds of the estate. § 1746. Effect of iregularities (a) An iregularity in proceedings under this subchapter with respect to the borrowing of money upon a note or notes secured by a chattel mortgage, pledge, or other lien, does not impair or invalidate the proceedings or the notes and mortgage, pledge, or other lien given in the pursuance thereof, and, except as provided by subsection (b) of this section, the mortgagee, his heirs and assigns, possess the same right and remedies on the note or notes and mortgage, pledge, or other lien as if it had been made by the decedent prior to his death. (b) Upon a foreclosure, if the proceeds of the encumbered property are insufficient to pay the note or notes, and mortgage, pledge, or other lien, a judgment or claim for any deficiency of the proceeds to satisfy the obligation, or the costs or expenses of sale, may not be had or allowed, except in cases where the note or notes, mortgage, pledge, or other lien were given to pay, reduce, extend, or renew a mortgage or

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