Irving Trust Co. v. B. Lindner & Bro., Inc.

Respondent is the trustee in bankruptcy of the Cliffoyd Manufacturing Company, herein referred to as the bankrupt. Prior to March 3, 1930, the bankrupt conducted the business of selling textile merchandise. On that day it entered into a contract whereby it agreed to give to appellant a lien upon all merchandise manufactured or acquired by it and to assign to appellant its accounts receivable. The contract, in form a letter addressed by appellant to the - bankrupt, referred to appellant as the bankrupt’s “ sole factors.” The bankrupt’s sales were to be made through the “ medium ” of defendant…