Fidelity Savings & Investment Co. v. New Hope Baptist Robert Stone Jeffrey Alan Dietert

This is an appeal from an order of the district court sitting as an appellate court in bankruptcy. The issue in this appeal is whether § 547(c)(2) of the Bankruptcy Code, 11 U.S.C. § 547(c)(2) (Supp. IV 1986), applies to a transfer unrelated to the payment of trade credit. Both the district and the bankruptcy courts ruled that such a transfer was within the terms of § 547(c)(2), thereby granting summary judgment for the defendants. We affirm.

I. Facts

The plaintiff, Fidelity Savings & Investment Co., is an Oklahoma corporation engaged in the business of making small, high interest loans to…