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ADA DEPEW et al., complainants-respondents, v. MARY SMITH et al.,defendants-appellants.

1. Three criteria exist for determining whether an absolute conveyance was intended as a mortgage: (1) Was there a debt which was not satisfied by the conveyance which survived so that the grantee might have sued on it? (2) Was the price paid considerably less than the value of the property granted? (3) What was the conduct of the parties with regard to the property after the date of the deed?

2. A deed is evidential as to the date of the acknowledgment, and as to the contents of the instrument itself, and must be accepted unless there is strong evidence to the contrary. There is no such evidence in this case.

3. Defendant had a right to prefer complainant, a bona fide creditor with a claim for legal services, to other creditors. The property conveyed to complainant by way of security, held, subject to the lien of complainant's claim.

4. Where there are two tracts, only one should be sold where the liens can be satisfied therefrom.

PER CURIAM.

The order appealed from will be affirmed, for the reasons stated in the opinion delivered by Vice-Chancellor Egan in the court of chancery. For affirmance — LLOYD, CASE, BODINE, DONGES, HEHER, PERSKIE, HETFIELD, DEAR, WELLS, WOLFSKEIL, RAFFERTY, JJ. 11.

For reversal — None.

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DEPEW v. SMITH
(May 14, 1936)