Commonwealth National Bank v. Miller

MONTEMURO, Judge:

The instant action is the result of a battle between two creditors for the assets of a debtor who had pledged his securities to one financial institution as collateral for refinancing of prior debts and later used his personal assets to obtain a second loan for his corporation. There is no doubt that each bank had a legitimate claim, to repayment. When the debtor’s financial situation collapsed, only one of the creditors was paid in full.

The only issue concerns the claim of the unpaid creditor that two acts of the debtor in regard to the securities amount to fraudulent…