Safe Deposit Bank and Trust Company v. Eugene B. Berman, Trustee, in the Matter of Fernandes Welding & Equipment Service, Inc., Bankrupt

COFFIN, Circuit Judge.

Appellant Safe Deposit Bank and Trust Company (Bank) appeals from an order of the district court affirming an adverse finding of a referee in bankruptcy. The referee had ruled that the Bank had not succeeded in establishing a lien on certain property (or the sales proceeds thereof) of a bankrupt.

The Bank had financed the bankrupt during the period relevant to this case, using a variety of security arrangements. On June 26, 1963 it had executed a blanket “Loan and Security Agreement”. This Agreement provided that the Bank would loan up to 70 per cent of the “borrowing…