Togut v. Wapnick (In Re Karachi Cab Corp.)

EDWARD J. RYAN, Bankruptcy Judge.

Karachi Cab Corp. (“Karachi”) prior to instituting arrangement proceedings under Chapter 11 of the Bankruptcy Code, 11 U.S.C. § 1101, et seq., executed a security agreement on August 1, 1979, with Ruth Wapnick (“Wapnick”) to secure the payment of a loan made by Wapnick to the debtor. Wapnick lent the sum of $5,800 to the debtor, of which $1,540 has been repaid, leaving an unpaid principal of $4,260 plus interest.

In connection with the security agreement, Wapnick filed a UCC-1 financing statement with the County Clerk of New York on August 15, 1979. The…