138 A. 249 | Md. | 1927
By chattel mortgage on April 23rd, 1926, Ralph Milburn, Inc., of Baltimore, conveyed to the appellant certain personal property to secure the sum of $708.75, which was signed, "Ralph Milburn, Inc., by Ralph Milburn, Pres., A. Gower Lawrence, Sec.-Treas." and was duly acknowledged May 4th, 1926, recorded May 5th, 1926, but did not contain a seal. Subsequently, and before any part of the mortgage debt was paid, Ralph Milburn, Inc., went into the hands of receivers, who are the appellees. The appellant filed a petition in the Circuit Court No. 2 of Baltimore City, praying the court to direct the receivers to deliver the mortgaged property to the petitioner, or to pay it the mortgage debt, or to sell the mortgaged property and, after the payment of costs and expenses, to pay the petitioner's claim out of the proceeds of sale. The receivers answered, admitting the facts, but alleged that the mortgage was not valid and was not a lien upon the mortgaged property because it did not contain the seal of Ralph Milburn, Inc., as required by article 21 of the Code. Judge Stanton passed a decree dismissing the petition, and directed that the mortgage be given priority over unsecured creditors at the time of its execution, but that it be distributed to paripassu with general creditors whose debts were contracted after its execution. From this decree an appeal was taken.
The sole question for us to decide is whether the seal was *355
essential to the validity of the mortgage. It has been decided by this Court that such mortgage is good as against prior unsecured creditors. Textor v. Orr,
Decree affirmed, with costs.