Collins v. Bank of Titusville & Trust Co.

WALKER, Circuit Judge.

The appellant, as trustee of the estate of a bankrupt, resisted a claim of the appellee based on a mortgage executed to it by the bankrupt and recorded within four months prior to the filing of the bankruptcy petition, on the ground that at the time the mortgage was given the bankrupt was insolvent and the appellee then had reasonable cause to believe that the enforcement of the mortgage would effect a preference. The court sustained the mortgage as to part of the property covered by it. Evidence adduced showed the following: The bankrupt, who was engaged in the business…