1. A bill of sale, absolute in form, but which is intended by the parties to convey only a title or interest by way of security instead of an absolute ownership, is a "conveyance intended to operate as a chattel mortgage."
2. Such a bill of sale, unrecorded, is void as against the trustee in bankruptcy of the transferor.
3. A manufacturer, in effectuating a sale to a dealer, shipped cars, sending to a bank the invoice and bill of lading with sight draft attached. The bank delivered the bill of lading to the dealer, on receiving from the dealer payment of part of the invoice together with a note to the bank from the dealer for the balance of the invoice price, and a bill of sale for the car, and the bank remitted to the manufacturer the full invoice price. When the dealer sold the car, he paid the bank the amount due on the note and received back the bill of sale. Held, that in such a transaction the bank is a creditor of the dealer, and held the bill of sale simply as security; and that (the bill of sale not being recorded) as between the bank and the trustee in bankruptcy of the dealer, the latter is entitled to the ownership and possession of cars covered by such bill of sale, retaken by the bank from the dealer immediately prior to the latter's bankruptcy.
PER CURIAM.
The decree appealed from will be affirmed, for the reasons stated in the opinion delivered by Vice-Chancellor Buchanan in the court of chancery.
For affirmance — THE CHIEF-JUSTICE, TRENCHARD, PARKER, LLOYD, CASE, DONGES, HEHER, VAN BUSKIRK, KAYS, HETFIELD, DEAR, WELLS, DILL, JJ. 13.
For reversal — None.