City Nat. Bank v. Zorn

BRYAN, Circuit Judge.

The City National Bank of Beaumont appeals from an order, entered in the bankruptcy proceedings of the O’Neal Furniture Company, rejecting its assertion of a valid lien and allowing its claim as an unsecured claim only. In support of its appeal the bank contends that it has a valid lien on accounts receivable pledged to it by the bankrupt, and is therefore entitled to have its claim given preference over the claims of general creditors.

The furniture company was adjudged a bankrupt on April 29, 1932. On December 22, 1931, or more than four months before bankruptcy, it…