Metheny

The proceeds from a sale of personal property mortgaged to secure the payment of a promissory note not being sufficient to pay the mortgage debt in full, this action was brought to recover the balance.

Defendants executed to plaintiff’s assignor the note in question payable in installments and secured by a chattel mortgage on furniture. The mortgage contained the following provision:

An' installment having become past due, plaintiff took possession of the property, removed it from the apartment house in which it was then located and took it to an auctioneer who, under plaintiff’s directions, sold the property at auction. The court found (1) that no lawful demand for the payment of the indebtedness was ever made on the defendants prior to the sale, (2) that no lawful notice of such sale was given cither to the defendants or to the public, (3) that no lawful sale was ever made of said property, and (4) that the security was not destroyed and did not become valueless without the act or fault of the mortgagee, but that the exhaustion of the security for said debt resulted from the acts of the mortgagee in not making a lawful sale. From these findings the court concluded that…