In Re Hurt Enterprises, Inc.

OPINION

WIDENER, District Judge.

This is a petition for review of an order of the Referee in Bankruptcy disallowing the claim of First and Merchants National Bank, petitioner, as a secured creditor.

In 1966, Granny Mustard Corporation, under an existing security agreement with petitioner Bank, gave the latter a chattel mortgage covering certain restaurant equipment, none of which was a fixture. Messrs. Mustard and Johnson and their wives were individual endorsers on the obligation secured by the mortgage. Financing statements reflecting this transaction and showing that the equipment was or was…