In the Matter of Robert Kenneth Ralston, D/B/A Ralston T. v. Sales & Service, Bankrupt. Ford Motor Credit Company v. James C. Baggott, Trustee

McCREE, Circuit Judge.

This is an appeal from a judgment affirming the determination of a referee in bankruptcy that Ford Motor Credit Company (hereinafter Ford) did not have a valid security interest in four vehicles purchased from Ford’s assignor by the manager of the bankrupt’s business. By consent, the vehicles were sold to avoid depreciation during the pend-ency of litigation, and the liens, if found to be valid, are to attach to the proceeds.

Robert Kenneth Ralston (hereinafter Ralston or the bankrupt) owned and operated a business known as Ralston T.Y. Sales and Service in Dayton, Ohio.…