1. A condition in a chattel mortgage that upon payment, the conveyance will be void is not a covenant for the payment of the debt secured by the mortgage.
2. Under the terms of a chattel mortgage sued upon, there can be no recovery of the amount due because the note for which it was given as security was barred by the statute of limitations.
BODINE, J.
The appeal is from a judgment of no cause of action. The plaintiff sued upon a promissory note and upon the condition contained in a chattel mortgage securing the same. The note was admittedly barred by the statute of limitations.
Had there been a covenant in the mortgage to pay the note, the circumstance that the suit on the note was barred by the statute of limitations would be no defense to an action on the covenant. Lembech Betz Eagle Brewing Co. v. Krause, 94 N.J.L. 219. But there was no covenant in the chattel mortgage in suit. There was but a condition avoiding the conveyance upon the payment of the debt. This is not a covenant under seal to pay the debt. Hence, there could have been no other ruling than that of the learned trial judge. Gottfried Krueger Brewing Co. v. Remek, 110 Id. 489.
The judgment is affirmed, with costs.