105 Wis. 11 | Wis. | 1899
The contemporaneous parol understanding or •agreement that the mortgagors might remain in possession and continue sale of the mortgaged stock of merchandise, and apply to their own benefit an indefinite portion thereof, renders the mortgage fraudulent as to other creditors, and void in law. Bakeslee v. Rossman, 43 Wis. 116; Charles Baumbach Co. v. Hobkirk, 104 Wis. 488. The fact that the authority given was to consume the merchandise itself, instead of to sell it and apply proceeds to living expenses and to supplying mortgagors’ logging camps, is a distinction without a difference. The mortgagees’ duty of good faith to other creditors to use their security only for the reduction of their debt is equally breached in either case. Equally
By the Court.— Judgment affirmed.