269. Priority of mortgages of choses or things in action.

Where the mortgaged property is a debt or other money owing1, or an interest in trust funds2, a mortgagee who gives written notice to the debtor or trustee gains priority over a mortgagee earlier in date who omits to give notice3. However, notice to the trustees, without requiring payment of income to the assignees, is not equivalent to taking possession4, and notice to the trustees will not give priority over advances previously made by them5. The omission to give notice leaves the property under the mortgagor's control and deprives the second mortgagee of the chance of ascertaining the existence

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