River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1914-04-30
POPULAR TALKS ON LAW
BY Walter X. Towers, A. g., J. D. OF The
Michigan Bar.
THE UNPAID cHATTEL MORTGAGE

10 DE D"OSo6ooCd VI AC' O
have an available security when
they seek to borrow money. But
there are others of US who find
occasion to seek an extension OF
credit who do not oWn land, or
whose land is already incumbered
bv a real estate mortgage. Such
a one may secure a loan by Civ
ing a mortgage on the family
horse, or the farm machinery, or
the stock in his store, as security.
When the paper which he signs
as a mortgage transfers the title
to the lender, giving him only the
privilege of remaining the owner
ship by repaying the loan, or
whether the paper simply gives to
the lender the privilege of taking
the property if the debt be not
paid, is not of vital interest to
the average borrower as long as
the result is practically the same.
The courts of some states proceed
along the theory that a mort
gage does one thing while those
of the others take the opposite
view. This difference in legal
theory is not likely to affect the
mar who gives a mortgage on his
property very directly, unless that
property is a female animal. Ev-
ery stock owner is familiar with
the rule Of law that the offspring
of domestic animals belong to the
owner OF the mother. So a calf
or colt will belong to the borrower
or lender according as the nj or
the other is looked upon as haV-
ing title to the mortgaged animal
in that Particular jurisdiction.
The practical and proper way to
meet the difficulty is to avoid it
by agreeing beforehand on this
point and having it specified in
the mortgage itself.
The points which interest a man
who has given a chattle mortgage
on his movable property as secur-
ity for money due are with regard
to the payment of the mortgage
or the consequences in case he
finds himself unable to pay on
time. 1t is usually specified in the
mortgage that the man who gives
the mortgage on his property, who
borroWs the money,-in law he is
called the mortgagOr-is to retain
possession Of the property cover
ed by the mortgage. In the terms
of the mortgage title is transfer
red to the man who receives the
mortgage, and lends the money.
the mOrtgagee. In practical eff
feet the mortgagee has a superior
sort of a claim on that property
to protect his loan. If the loan is
not paid in full then he may en-
force his claims against the pro-
perty.
When the debt which the mort
gage was given to secure is paid
in full the claims of the mOrtgagee
to the property are destroyed and
the mortgagor's title again be
comes complete. When the bor-
rover takes the money due in good
and lawful currency-any money
which is legal tender-and tenders
it the person to whom the money
is due, on the day and at the place
specified in the mortgage, the
chattel mortgage is discharged.
The amount must be the debt to-
gether with all proper interest
charges and it must be definitly
offered to the mortgagee - held
out before him. Though he re-
fuses to accept the mortgage will,
in most circumstances be discharg-
ed by this tender. The debt will
still remain due but the mortgage
on the goods will be discharged
and they will be free from incum-
brance.
If the holder of the mortgage,
the mortgage, has transferred it
to another, and the mortgagor has
been notified of it, he should of
course make the payment to the
present holder of the mortgage
But if he has received no notice of
the transfer and in good faith
pays the money over to the per-
son to whom he gave the mort
gage, he will be protected and the
mortgage held discharged.
1t may be that both parties feel
that the mortgaged property is
worth just about the amount due
and the mortgagor is willing to
have the mortgagee take it in full
settlement and that the mortgagee
is willing to receive it. If this is
done under a definite agreement
the mortgage is discharged.
In most states it is held that
Onop tho nanp4ronn hoo hoon~o