Louis C. McClure Trustee in Bankruptcy of Bruce's Juices, Inc. v. The Fidelity & Casualty Company of New York

HUTCHESON, Chief Judge.

This appeal from an order in bankruptcy presents the single question of law, whether, upon the undisputed facts, 1 a savings bank deposit, Account No. 6842, which had been pledged by the bankrupt with appellee in connection with bonds issued by it as surety in November, 1950, may be applied by it to an indebtedness arising out of a subsequently executed bond.

The matter comes up in this way. The referee, determining that the pledge was applicable to and only to the bonds issued in 1950, denied the petition of appellee for an order directing The First Federal Savings &…