Pender v. Chatham Phenix Nat. Bank & Trust Co.

SWAN, Circuit Judge.

The trustee in bankruptcy of Morris Sugarman brought suit to set aside a payment of $3,500 made by the bankrupt to the defendant bank within four months of the bankruptcy. Upon the evidence adduced, all the elements of a preference voidable under section 60b of the Bankruptcy Act (11 USCA § 96) were found to exist except the last, namely, the requirement that the creditor “shall then have reasonable cause to believe” that the transfer would effect a preference. As to that issue the court below found in favor of the defendant. The correctness of this finding is the only…