In the Matter of Raymond Service, Inc., Bankrupt. Helen Fishman v. Frank A. Margiotta, Trustee-Appellee

KAUFMAN, Circuit Judge:

Mrs. Fishman, a secured creditor of Raymond Service, Inc. (“the bankrupt”), appeals from a District Court order confirming a Referee’s order declaring null and void a chattel mortgage of the bankrupt held by her. Relying on Section 70 of the Bankruptcy Act, 11 U.S.C. § 110, the trustee in bankruptcy sought to avoid the mortgage on the ground that it was voidable under New York law because there was an unreasonable delay between delivery and filing. We reverse because, in this case, the two-week time lapse was not unreasonable.

On April 23, 1959, Mrs. Fishman, a widow…