Buffalo Hebrew Social Club Federal Credit Union v. Coles

Judgment and order reversed on the "law, with costs, and plaintiff’s motion for 'summary" -judgment' granted, with costs! Memorandum:'' ■ Defendant-' 'sold a'-truck tó'due Goles under* am 'unrecorded" conditiohal"'sales' contract:'’i-While'-. Cble'S'"was1 in' possession1, ofI';th,e>'truck’Un’dlwas"the apparent owner th'eieofy■ hé1 borrowed taóiiey frobrtfió' plaintiff.’ In default ánd threatened with-legal actiohy-' Coles subsequently mortgaged the truck to plaintiff as security for the antecé-b dent debt. Plaintiff accepted the chattel mortgage, which was properly recorded, Htigood faith -and Mthoufe-iLotice-of,defendant’s'¡¡reserve; -.title.- i,W&-thOTk>9]38.t plaintiff was -a-“ purchaser:’’ ¡ -within - the, meaning.- of section,,65-of: the, Personal-Property vLawy although the mortgage was takem-to- secure a.pre-existing claim:» (Personal Property Law, § 156; Peuser v. Marsh, 218 N. Y. 505 , 508; Baldwin v. Childs, 249 N. Y. 212 , 216; see, also, 1935 Report of N. Y. Law Revision Commission, pp. 21-32; Eager on Chattel Mortgages and Conditional Sales, §. 345, and Moyer v. McIntyre, 43 Hun 58 .) All concur (Appeal-¡from, a-judgment: ¡of Erie1 Special Term ¡¡dismissing -plaintiff’s .¡complaint .in .an. action t to..f ore-* ¡ close •a:éhattel¡ mórtgage.¡) ¡'i ’Present McCurn, P.J., Vaughan, Kimball, Wheeler and Van Duser, JJ.