128 Iowa 124 | Iowa | 1905
I. The mortgage under which plaintiff claims was executed October 11, 1901, but it was not filed for record until December 1, 1902. It provided that the mortgagor, Ellis, might continue in the possession of the property, which was a stock of merchandise, and sell the same at retail, and there was an oral agreement between the parties that the stock should be kept up. There was no agreement, either oral or written, for the application of the proceeds of sales to the mortgage indebtedness. The plaintiffs in execution, under which writ the- defendant sold the property, had actual notice of plaintiff’s mortgage for many weeks before the levy upon the mortgaged property. Under these conceded facts plaintiff was and is entitled to judgment unless defendant has established the fraud pleaded by him. His exact claims in this respect are: First, that the mortgage is void because withheld from record by the mortgagee; second, because of the agreement allowing the mortgagor to remain in possession of and to sell the. goods covered by the mortgage without accounting to the mortgagee; third, because it covers all of the mortgagor’s property, and all that he should thereafter acquire, and largely exceeded in value the amount of the indebtedness which it was intended to secure; and, fourth, because it was made with intent to hinder, delay, and defraud the mortgagor’s creditors. An estoppel due to plaintiff’s conduct with reference to the mortgage, and to the property covered thereby is also relied upon.
The decree is right, and it is affirmed.