Knowles v. Ritter

SWAN, Circuit Judge (after stating the facts as above).

The trustee’s first contention is that the assignments were invalid to the extent of $5,500, because there was no “present consideration” therefor, within the meaning of section 67d of the Bankruptcy Act (11 USCA § 107(d). It was the practice of the parties, in computing the amount to be advanced upon the accounts assigned as collateral for such advance, to appraise the accounts at 92 per cent, of their face and to advance 80 per cent, of such appraised valua The accounts were thus appraised because the bankrupt’s customers were entitled…