Bankers' Trust Co. v. Irving Trust Co.

MANTON, Circuit Judge.

The order entered below disallowed and expunged appellant’s claim in bankruptcy because the appellant was held to he a secured creditor of the bankrupt under section 1, subd. 23 of the Bankruptcy Act (11 IJSCA § 1 (23). In August, 1929, the Retail Chemists’ Corporation, then known as Whelan’s Drug Company, Inc., borrowed $100,000 from appellant and gave as security a first morigage on certain real estate owned by it. The United Cigar Stores Company of America, the bankrupt herein, gave to the appellant its collateral bond as security for payment of the borrowed money.…