•  
  •  
 

Document Type

Article

Media Type

Text

Abstract

Reformers recently have attacked the priority accorded the Anglo-American nonpossessory secured transaction both under bankruptcy and non-bankruptcy law. These reformers believe that the law should reserve some of the debtors™ assets for general creditors, most notably tort claimants with judgment liens. The priority rule like many legal rules was adopted to solve some problem. The problem has disappeared, yet the rule remains. Thus, lawmakers must determine if some new rationale justifies the rule and, if so, the rule takes on a new life. If not, then lawmakers should change rules to accommodate the new conditions. This article aims to provide an understanding of the original reason for the rule granting a nonpossessory secured transaction priority. Further, this article endeavors to examine the historical record to determine in what situations the parties used the early nonpossessory secured transaction; what rules the courts developed to handle the transaction; and which parties benefitted from the old rules, which parties desired to ban the transaction, and which parties sought the reform of recording through the chattel mortgage acts. To accomplish this, this article examines the readily findable pre-chattel mortgage act appellate opinions for factual data bearing on the early use of the nonpossessory secured transaction.

First Page

1

Last Page

67

Publication Date

5-1-2000

Department

Other

ISSN

0734-1490

Language

eng

Publisher

Northern Illinois University Law Review

Included in

Law Commons

Share

COinS
 
 

To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.