In the Matter of Corland Corporation, Debtor. James L. Stephenson, and United Bank, N.A., Cross-Appellees v. Duke Salisbury, Cross-Appellant

W. EUGENE DAVIS, Circuit Judge:

Appellants appeal the district court’s judgment allowing the bankruptcy trustee to avoid a postpetition transfer of property of the estate and denying appellant Stephenson a setoff. Because we conclude that the transfer was a third-party payment on a guaranty and did not involve property of the estate, we reverse on both issues and remand for further proceedings. The Trustee cross-appeals the admission of certain evidence and the denial of leave to amend his complaint; we find no error and affirm the judgment on both these issues.

I

In 1980 the First National Bank…