Irving Trust Co. v. Bank of America Nat. Ass'n

FRANK J. COLEMAN, District Judge.

The question presented is whether a voidable preference was created in favor of the defendant bank by the repayment of a day loan which had been made to the bankrupt on the same day, which was the day before the petition in bankruptcy was filed. The bankrupt, Broomhall, Killough & Co., Inc., was a dealer in securities and had a long standing arrangement with the defendant in relation to day loans. These were applied for each morning before the opening of the market with the understanding that they would be repaid the same day and the application was a routine…