612 ARTICLE 21.

An. Code, sec. 40. 1904, sec. 38. 1888, sec. 38. 1856, ch. 154, sec. 122.

41. Every release executed in either of the above modes shall be con-
strued and deemed sufficient to release said mortgage, as fully and effectu-
ally as any instrument of writing whatever could do.

An. Code, sec. 41. 1904, sec. 39. 1888, sec. 39. 1833, ch. 181. 1839, ch. 26.

42. A release or assignment may be made by an executor or assignee
in the same manner and form and with like effect as by the mortgagee;
this section to apply to every assignee, whether he claims by direct assign-
ment from the mortgagee or his executor, or under a series of assignments.

An. Code, sec. 42. 1904, sec. 40. 1890, ch. 14. 1890, ch. 373, sec. 39A. 1924, ch. 415.

43. 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 35, 37, 38 and 39 of
this article, and whenever any proceedings to foreclose 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 and the Clerk of the Superior Court
of Baltimore 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

Bills of Sale.

An. Code, sec. 43. 1904, sec. 41. 1888, sec. 40. 1729, ch. 8, secs. 5, 6. 1856, ch. 154, sec. 123.

44. 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 purchaser, mort-
gagee or donee, unless by bill of sale or mortgage acknowledged and re-
corded as herein provided; but nothing herein shall be construed to extend
to any sale or gift, where the same is accompanied by delivery, nor to in-
validate 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 equita-
ble lien is created. Effect thereof. Distribution of fund. Textor v. Orr, 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
mortgagea 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 an unrecorded bill of sale or mortgage, he is bound by
it. Hudson v. Warner, 2 H. & G. 430. (And see notes to sec. 13.)

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