American Trust Co. v. New York Credit Men's Adjustment Bureau, Inc.

CLARK, Circuit Judge,

This appeal involves the validity of certain chattel mortgages given by the bankrupt, Wire Recording Corporation of America, to petitioner, American Trust Company. The first mortgage loan of those involved herein was made by the Trust Co. to the bankrupt, then known as St. George Recording Equipment Corporation, on January 14, 1947, at which time Ernest St. George owned 25 shares of the bankrupt’s outstanding stock, and his wife, Marie St. George, owned the remaining 20 shares. A formal written agreement provided for a ^ to be repaid at the rate . O. nnn , , , . of $4,000…