Case ID: ad_273/html/0777-01.html
Source: Caselaw Access Project
Author: {"author": "", "license": "Public Domain", "url": "https://static.case.law/"}
Date Created: 2024-08-24T03:29:51.129683

In the Matter of the Application of the People of the State of New York, by George S. Van Schaick, as Superintendent of Insurance of the State of New York, for an Order to Take Possession of the Property of and Rehabilitate the Bond and Mortgage Guarantee Company. In the Matter of a Plan of Readjustment of the Rights of the Holders of Investments in a Mortgage Covering Premises 405 Broadway, City of Long Beach, Guaranteed by Bond and Mortgage Guarantee Company. (Guarantee No. 180,531.) Rosa B. Hirsh, Appellant; Manufacturers Trust Company, as Trustee, et al., Respondents.
   Appeal by claimant from an order, entered in reorganization proceedings on a final accounting by a trustee of a certificated mortgage, insofar as it rejected her claim for an alleged deficiency under a chattel mortgage. Order, insofar as appealed from, affirmed, with $10 costs and disbursements to respondent Manufacturers Trust Company. The pertinent statutes do not require a trial of such a claim in such a proceeding. The rejection of the claim for the alleged deficiency under the chattel mortgage relegated the claimant to an action to enforce the alleged deficiency. In such an action the mortgagor would be afforded an opportunity to contest the claim in whole or part (Consumers Brewing Go. v. Braun, 147 App. Div. 171; Willcox v. Perez, 115 App. Div. 693; Hyer v. Sutton, 59 Hun 40; Harrison v. Hall, 239 Y. Y. 51, 53; 2 Jones, Chattel Mortgages and Conditional Sales, § 711; Cottone v. Spivach, 159 Y. Y. S. 241 [not officially published]; Gase v. Boughton, 11 Wend. 106), where the alleged sale, upon which the alleged deficiency is based, was not made in the course of an action to foreclose the mortgage. Here the alleged sale was made pursuant to the terms of the chattel mortgage. Hagarty, Acting P. J., Carswell, Johnston, Adel and Sneed, JJ., concur.