Investment Funds Corporation v. Thomas Bomar, Trustee of Kitimat Corporation

TUTTLE, Chief Judge.

The District Court appointed a Special Master to hear the claims which were asserted by the appellants against the appellee, the trustee in bankruptcy of the Kitimat Corporation. The claims were based on certain loans which had been made by the appellants to the bankrupt in 1958. The Special Master denied the claims on the ground that the loans were usurious under the applicable Florida law and were therefore not recoverable against the trustee by virtue of the provisions in section 70, sub. c of the Bankruptcy Act. 1 The District Court approved the Special Master’s report.