Simpson v. Philco Finance Corp.

*20MEMORANDUM OPINION AND ORDER

SHELL, District Judge.

This is a proceeding for review of an Order entered by the Bankruptcy Judge on December 3, 1974 disallowing a claim presented by the Reclamation Petition of appellant Philco Finance Corporation.

The question presented here for review is whether the contract by which Philco “floor-planned” merchandise to the bankrupt was void because of usurious rates of interest chargeable on the inventory.

The challenged transactions arise out of Philco’s Inventory Financing and Security Agreement whereby Philco would supply inventory to a dealer, though a…