In re Los Angeles Mfg. Co.

I cannot concur in that part of the order of the referee that disallows and detaches any lien upon personal property located in Los Angeles county that was acquired after the delivery and recording on December 31,1926', of the trust indenture and chattel mortgage.

The stipulation of facts sent up by the referee concedes that the trust instrument expressly hypothecates and mortgages all after-acquired personal property of Los Angeles Manufacturing Company to secure the payment of the corporation bonds that were subject matters of the trust agreement. Section 2883 of the California Civil Code sanctions the validity of agreements that create and affix liens on after-acquired property and property that is not in existence at the time of the agreement, and this Code section also provides that the lien agreed for attaches to property acquired under the agreement from the time that the party agreeing to give the lien acquires an interest in such property.

There does not appear to be any reason why this statute should be restricted in its application to real property. It refers to property in the generic sense. The expression that the agreement may be made to give the lien on property…