Central Trust Co. v. First Nat. Bank

PAGE, Circuit Judge.

Bankrupt, engaged in the printing business, had long done business with appellee bank, and on November 21, 1920, owed the bank $9,200 on notes and $2,000 overdraft. It made a request for an increase in its loans, which the hank granted on condition that the whole loan should not exceed $12,000 and should be secured by a chattel mortgage on bankrupt’s machinery and fixtures. A note for $12,000 and a chattel mortgage securing same were executed to the bank under date of November 21st. The mortgage was acknowledged November 27th, and recorded December 14th.

As of the date of…