In Re J. A. Thompson & Son, Inc., Debtor. Ralph Aoki, Receiver v. Shepherd MacHinery Co.

MILTON L. SCHWARTZ, District Judge:

Shepherd Machinery Company (“Shepherd”), appellee herein, is a California corporation engaged in the business of selling and leasing heavy construction equipment in Southern California. J. A. Thompson & Son, Inc. (“Thompson”) was, at the time here in question, a California corporation engaged in construction work. On April 6, 1973 Thompson entered into two agreements with Shepherd, each entitled “Machinery Lease,” whereby Thompson leased two compactors and two bulldozers for a term of one year, the term being automatically renewed until termination of the…