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CORN EXCHANGE NAT'L BANK & TRUST CO., 318 U. S. 434 (1943)

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U.S. Supreme Court

Corn Exchange Nat'l Bank & Trust Co., 318 U.S. 434 (1943)

Corn Exchange National Bank & Trust Co.

No. 452

Argued February 2, 3, 1943

Decided March 8, 1943

318 U.S. 434

Syllabus

Within four months of bankruptcy, the debtor had assigned accounts receivable as security for concurrent loans. Notice to those who owed the accounts was not given, although, under applicable local law, notice was necessary in order to preclude possible superior right in subsequent bona fide purchasers of the accounts.

Held, that the assignments were preferential under § 60(a) of the Bankruptcy Act, and thus avoidable by the trustee in bankruptcy under § 60(b) thereof. P. 318 U. S. 439.

129 F.2d 24, 894, affirmed.

Certiorari, 317 U.S. 617, to review the reversal of an order of the bankruptcy court which affirmed orders of the Referee allowing certain claims of the petitioners as secured claims against the bankrupt estate.





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