Form of personal mortgage.

When void as to third

persons.

Mortgage of ships,

p. 318. Furniture and fixtures of saloons are not included among the property which may be mortgaged.Gassner vs. Patterson, 23 Cal., p. 299.

Subd. 9.-Quiriaque vs. Dennis, 24 Cal., p. 154.

2956. A mortgage of personal property may be made in substantially the following form:

This mortgage, made the

year- by A B, of
mortgagor, to CD, of
mortgagee, witnesseth:

That the mortgagor mortgages to the mortgagee [here describe the property], as security for the payment to him of dollars, on [or before] the

with interest thereon

day of ——, in the year
[or, as security for the payment of a note or obliga-
tion, describing it, etc.]

A B.

NOTE.-See note to Sec. 2918. Occupation stated as that of "late merchant at Pine Grove" is sufficient.Ede vs. Johnson, 15 Cal., p. 53.

2957. A mortgage of personal property is void as against creditors of the mortgagor and subsequent purchasers and incumbrancers of the property in good faith and for value, unless:

1. It is accompanied by the affidavit of all the par-
ties thereto that it is made in good faith and without
any design to hinder, delay, or defraud creditors;
2. It is acknowledged or proved, certified, and re-
corded in like manner as grants of real property.

NOTE." Subsequent purchasers and incumbrancers
in good faith."-Gregory vs. Thomas, 20 Wend., p. 17;
Meech vs.
Patchin, 14 N. Y., p. 71; "and for value."-
Van Heusen vs. Radcliff, 17 N. Y., p. 580; Thompson

vs. Van Vetchen, 27 N. Y., p. 568. "Good faith"
defined.-Sec. 15, ante.

2958. A mortgage of any vessel or part of any

when void vessel under the flag of the United States is void as

as to third persons.

against any person (other than the mortgagor, his heirs, and devisee, and persons having actual notice thereof) unless the mortgage is recorded in the office

of the Collector of Customs where such vessel is regis-
tered or enrolled.

NOTE.-Act of Congress of July 29th, 1870, 9 U. S.
Stats. at Large, p. 440.

recorded.

2959. A mortgage of personal property must be Where recorded in the office of the County Recorder of the county in which the mortgagor resides, and also of the county in which the property mortgaged is situated, or to which it may be removed.

NOTE.-See notes to Secs. 1158 and 2924.

2960. For the purposes of this Article property in transit from the possession of the mortgagee to the county of the residence of the mortgagor, or to a loĉation for use, is, during a reasonable time for such transportation, to be taken as situated in the county in which the mortgagor resides, or where it is intended to be used.

2961. For a like purpose personal property used in conducting the business of a common carrier is to be taken as situated in the county in which the principal office or place of business of the carrier is located.

Property in where to be

transit,

recorded.

Property of carrier. recorded.

a common

where to be

in different

2962. A single mortgage of personal property, Recorded embracing several things of such character or so sit places. uated that by the provisions of this Article separate mortgages upon them would be required to be recorded in different places, is only valid in respect to the things as to which it is duly recorded.

mortgage

may be

recorded.

2963. Except as it is otherwise in this Article Personal provided, mortgages of personal property may be acknowledged or proved and certified, recorded in like manner and with like effect as grants of real property; but they must be recorded in books kept for personal mortgages exclusively.

NOTE.-See Secs. 1213-1217, inclusive, Vol. I, pp.

328-337.

Certified

copies may

be recorded, when.

Property exempt

from effect gage, when.

of mort

May be taken by

as a pledge, when.

2964. A certified A certified copy of a mortgage of personal property once recorded may be recorded in any other county, and when so recorded the record thereof has the same force and effect as though it was of the original mortgage.

2965. When personal property mortgaged is thereafter by the mortgagor removed from the county in which it is situated it is, except as between the parties to the mortgage, exempted from the operation thereof, unless either:

1. The mortgagee, within thirty days after such removal, causes the mortgage to be recorded in the county to which the property has been removed; or,

2. The mortgagee, within thirty days after such removal, takes possession of the property, as prescribed in the next section.

2966. If the mortgagor voluntarily removes or mortgagee permits the removal of the mortgaged property from the county in which it was situated at the time it was mortgaged, the mortgagee may take possession and dispose of the property as a pledge for the payment of the debt, though the debt is not due.

How foreclosed.

Mortgage property may be levied

upon.

Limitations on right of levy.

2967. A mortgagee of personal property, when the debt to secure which the mortgage was executed becomes due, may foreclose the mortgagor's right of redemption by a sale of the property, made in the manner and upon the notice prescribed by the Title on Pledge," or by proceedings under the CODE OF CIVIL PROCEDURE.

2968. Personal property mortgaged may be taken under attachment or execution issued at the suit of a creditor of the mortgagor.

2969. Before the property is so taken, the officer must pay or tender to the mortgagee the amount of the mortgage debt and interest, or must deposit the

amount thereof with the County Clerk or Treasurer, payable to the order of the mortgagee.

2970. When the property thus taken is sold under process, the officer must apply the proceeds of the sale as follows:

1. To the repayment of the sum paid to the mortgagee, with interest from the date of such payment; and,

2. The balance, if any, in like manner as the proceeds of sales under execution are applied in other

cases.

Certain

sections not

to mortgage

2971. Sections 2957, 2959, 2960, 2961, 2962, 2963, 2964, 2965, and 2966 do not apply to any mortgage of applicable a ship or part of a ship under the flag of the United States.

NOTE.-By an Act of Congress of July 29th, 1850, it is provided "that no bill of sale, mortgage, hypothecation, or conveyance of any vessel, or part of any vessel of the United States, shall be valid against any person (other than the grantor or mortgagor, his heirs and devisees, and persons having actual notice thereof), unless such bill of sale, mortgage, hypothecation, or conveyance be recorded in the office of the Collector of the Customs where such vessel is registered or enrolled." There is no reason why a mortgage, which by the laws of the United States must be registered at the Custom House, should also be required by the State to be recorded in the Recorder's office. Sufficient notice of the lien is given, and all important objects of recording are secured by the registry required by the Federal law, and the class of mortgages embraced by that law may be safely left to its exclusive operation.

of certain

ships.

CHAPTER III.

SECTION 2986. Pledge, what.

PLEDGE.

2987. When contract is to be deemed a pledge.
2988. Delivery essential to validity of pledge.

Pledge, what.

SECTION 2989. Increase of thing.

2990. Lienor may pledge property to extent of his lien.
2991. Real owner cannot defeat pledge of property trans-
ferred to apparent owner for purpose of pledge.

2992. Pledge lender, what.

2993. Pledge holder, what.

2994. When pledge lender may withdraw property pledged. 2995. Obligations of pledge holder.

2996. Pledge holder must enforce rights of pledgee.

2997. Obligation of pledgee and pledge holder, for reward.

2998. Gratuitous pledge holder.

2999. Debtor's misrepresentation of value of pledge.

3000. When pledgee may sell.

3001. When pledgee must demand performance.

3002. Notice of sale to pledgor.

3003. Waiver of notice of sale.

3004. Waiver of demand.

3005. Sale must be by auction.

3006. Pledgee's sale of securities.

3007. Sale on the demand of the pledgor.

3008. Surplus to be paid to pledgor.

3009. Same.

3010. Pledgee's purchase of property pledged.

3011. Pledgee may foreclose right of redemption.

2986. Pledge is a deposit of personal property by way of security for the performance of another act.

NOTE.-Edwards on Bailm., Chap. 5, p. 188, defines a pledge to be "something put in pawn or deposited with another as security for the repayment of money borrowed, or for the performance of some agreement or obligation. It is legally defined to be a bailment of goods by a debtor to his creditor, to be kept till the debt is discharged." See, also, Jones Bailm., p. 118. Lord Holt says: "The fourth sort of bailments is when goods or chattels are delivered to another as a pawn, to be security for money borrowed of him by the bailor; and this is called in Latin 'vadium,' and in English a pawn or pledge."-Coggs vs. Bernard, 2 Ld. Raym., p. 909. Mr. Justice Story (Sec. 286) agrees with Domat in the more comprehensive definition, that it is "a bailment of personal property, as a security for some debt or engagement."

AS TO WHAT CONSTITUTES A PLEDGE in general, see Cortelyou vs. Lansing, 2 Caines Cas., p. 200; Barrow vs. Paxton, 5 Johns., p. 258; McLean vs. Walker, 10 id., p. 471; Brownell vs. Hawkins, 4 Barb., p. 491; Hasbrouck vs. Vandervoort, 4 Sandf., p. 74; Bank of