In re Empire Refining Co.

Four Drillers Contracting & Supply Company, Limited, filed a petition with the referee asking leave to foreclose a chattel mortgage claimed to be held by it as a lien against the property of the bankrupt estate. The trustee objected to the allowance of the order on the ground that the chattel mortgage was void. The referee determined the *549 case against the trustee, and the latter brought this proceeding to review the referee’s action.

On November 22, 1929, the bankrupt made in form a chattel mortgage in favor of Four Drillers Contracting & Supply Company, on certain of its property as security for the payment of the sum of $15,000. The alleged mortgage was recorded in the office of the county recorder of Los Angeles county on November 29, 1929. The contention of the trustee, is that the mortgage was void as against creditors because, when it was recorded, it was not accompanied by an affidavit of the mortgagee as required by section 2957 Civil Code of California. That-section provides that there shall be attached to every chattel mortgage the affidavit of “all the parties thereto that it is made in good faith and without any design to hinder, delay, or defraud creditors.” It…