Lessler v. Paterson National Bank

Jacob Goldstein, a silk manufacturer in Paterson, was adjudged a bankrupt in the federal district court, July 17th, 1924. The complainant was elected his trustee in bankruptcy, and he brings this suit to set aside a chattel mortgage made by the bankrupt to the Paterson National Bank, dated March 4th, 1924, and duly recorded on that date. The mortgage covers machinery which has been sold by the trustee in bankruptcy for about $5,200, free of the bank's lien under the mortgage, its lien attaching to the fund. The undisputed facts and circumstances surrounding the making of the mortgage are: On…