Irving Trust Co. v. Finance Service Co.

L. HAND, Circuit Judge.

This is a suit brought by a trustee in bankruptcy to set aside as fraudulent conveyances seven assignments of accounts made by the bankrupt before petition filed. The facts were as follows: The bankrupt was a dealer in furniture and needed money in its business; the defendant was a money lender, lending upon the security of customers’ accounts. It lent the bankrupt about thirty thousand dollars at various times, taking as security assignments of its accounts, without notifying the customers. The bankrupt was allowed to collect, and to deposit the money in its general…