506 CONVEYANCING. [ART. 21

this section to apply to every assignee, whether he claims by direct
assignment from the mortgagee or his executor, or under a series of
assignments.

1904, art. 21, sec. 40. 1890, ch. 14. 1890, ch. 373, sec. 39 A.

42. Whenever any assignment or release of a mortgage, or any
release or assignment of an interest in any deed of trust is made by a
separate deed, or in any other mode than that prescribed in sections
34, 36, 37 and 38 of this article, and whenever any proceeding to fore-
close a mortgage is had, or a sale under any deed of trust is made, it
shall be the duty of the clerks of the circuit courts of the counties to
enter in the margin of the record of the original paper a memorandum
of the place where such deed of assignment or release, or proceeding
of foreclosure, or report of sale, as the case may be, is recorded; and
the clerk making such entry shall charge therefor the sum of twenty-
five cents, to be taxed as part of the fee for recording such assignment
or release, or as part of the costs of the case where there has been a
foreclosure of mortgage or sale under a deed of trust. This section
shall not apply to Baltimore city.

Bills of Sale.

Ibid. sec. 41. 1888. art. 21. sec. 40. 1860. art. 24, sec. 39. 1729. ch. 8, secs. 5, 6.
1856, ch. 154. sec. 123.

43. No personal property, of any description whatever, whereof
the vendor, mortgagor or donor shall remain in possession, shall pass,
alter or change, or any property therein be transferred to any pur-
chaser, mortgagee or donee, unless by bill of sale or mortgage acknowl-
edged and recorded as herein provided; but nothing herein shall be
construed to extend to any sale or gift, where the sa.me is accompanied
by delivery, nor to invalidate such transfer as between the parties
thereto.

Creditors and purchasers. Parties.

An agreement held to be ineffectual as a bill of sale or chattel mortgage as
against third parties, because this section was not complied with. In such
case, an equitable lien is created. Effect thereof. Distribution of fund.
Textor v. On, 86 Md. 397. Cf. Alexander v. Ghiselin, 5 Gill, 180.

A mortgagee will not be permitted to withhold a mortgage from record,
and then, by taking a renewal and recording it. prejudice the rights of those
who have trusted the mortgagor on the strength of his possession of the
property mortgaged. When mortgages will be regarded as renewals. Gill v.
Griffith, 2 Md. Ch. 282. And see In Re Noel, 137 Fed. 694. Cf. Alexander v.
Ghiselin. 5 Gill, 180.

A defectively executed and unrecorded mortgage is invalid as against a
second mortgage duly recorded. Ober & Sons Co. v. Keating, 77 Md. 103.

If a creditor has notice of au unrecorded bill of sale or mortgage, he is
bound by it. Hudson v. Warner, 2 H. & G. 430. (And see notes to section 13.)

This section has no application unless the mortgagor remains in possession
of the property, and even then, a compliance with it Iis not essential as
between the parties. Rights of subsequent purchaser. Biemiller v. Schneider,
62 Md. 559.

A defectively executed and unrecorded bill of sale or mortgage is effectual
as against the vendor and all claiming under him. Gough v. Edelin, 5 Gill,
103; Clagett v. Salmon, 5 G. & J. 346; Dorsey v. Smithson, 6. H. & T. 63. See
also, Ing v. Brown, 3 Md. Ch. 521.