The result in this case depends upon the effect of § 6890 of the Code, which provides: "Conveyances of personal property to secure debts, or to provide indemnity, are inoperative against creditors and purchasers without notice, until recorded," etc.
The settled construction of this statute is that a prior unrecorded mortgage, as to a subsequent mortgagee who without notice takes a subsequent mortgage and parts with value, is void. Nolen v. Farrow,
The sole effect of the "subordination" agreement between Kinney and appellee was to subordinate Kinney's prior lien to that of appellee's mortgage. It did not circumvent or destroy the effect of the statute which protects appellants against the prior unrecorded mortgage of appellee.
In Ohio Sav. Ass'n v. Bell et al.,
This is an agreed case, and the judgment here is that the circuit court erred in giving judgment for the plaintiff. That judgment is reversed, and one here rendered in favor of the defendants, appellants here.
Reversed and rendered.
ANDERSON, C. J., and THOMAS and KNIGHT, JJ., concur.
