Manufacturers Acceptance Corporation v. Hale

SIMONS, Circuit Judge.

In a bankruptcy proceeding, in which the Dixie Chair Company, a Tennessee corporation, was adjudicated, the appellant filed proof of several items of indebtedness which it asked to have allowed as secured. The two items here involved were allowed as unsecured claims, but were denied the protection of claimed security. Upon review by the District Court the order of the referee was affirmed, and this appeal followed.

The appellant is a financing corporation. On February 25, 1930, it entered into contract with the bankrupt, in pursuance of which it loaned the bankrupt the…