APPEAL DISMISSED.

Auckland Star, Volume LX, Issue 215, 11 September 1929, Page 23

APPEAL DISMISSED.

LOAN RAISED ON FTTRNITi; _tE. GOODS AFTERWARDS SOLD. Judgment was delivered at the supreme Court yesterday in an ippeal by the Guardian Inist and Executors Co. of New Zealand, Ltd., igainst a decision given hy Mr. E. C. bitten, S.M., in the Magistrate's Court. , The respondent was the Equitable Loan md Finance Co., Ltd. The facts were that on May '-50. 1927, Robert Craig Eeid secured from respondent an advance of £50 uorin certain chattels. The principal sum clue inder the bill of sale after July 1, 1927, .vas not paid. Reid, being pressed for noney, allowed his wife to sell to George Walker, auctioneer, on Octobe- 28, 1927, the chattels upon which the "oan had been advanced by respondent Eeid's ivife had given the name of Mrs. Moore to Walker, who died on February 2, 1928. I In the action brought by Ihe Equitable Loan and Finance Co.. 1,1 d., in the Magistrate's Court, Mr. C'lfcien crave judgment for plaintiff, and in "pho'ding that judgment this morning Sir Alexander Herdman said: "When an instrument by way of security and a defeasance engrossed on the instrument is registered, and when after five years' registration it has been renewed, there exists not only an obligation on the part of the grantor to repay the principal aad to pay interest, but there is over and above that an assignment of chattels bv way of mortgage, and during tho existence of the registered security the chattels are protected, in the interests of the grantee. The law requires tha t the true . bargain between the parties should be j recorded when registration ia effected, but the legislature in New Zealand has refrained from stating that the assignment of chattels is to become void if some subsequent arrangement beiween the parties was made to modify the terms of the original security. It may be that some kind of novation might take place which would extinguish the original instrument, but that is not this case." Mr. Leary appeared for appellant and Mr. Simpson for respondent.