Triffin v. Interstate Printing Co., Inc.

BECK, Judge:

The issue presented is whether funds of a bankrupt on deposit in a bank are immune from execution by a secured creditor where the Bankruptcy Court has expressly permitted the secured creditor to enforce any security interest he may have in the bankrupt’s property under state law.

Appellant Triffin became a secured creditor of Interstate Printing Co., Inc. (“Interstate”) by virtue of a Security Agreement between the parties executed on January 15, 1981. Pursuant to the Security Agreement, Interstate granted Triffin a security interest in “ ... all ... assets now owned or hereafter…