In the Matter of Charles Gregory Martin, Bankrupt. Charles Gregory Martin v. First National Bank of Massillon

This is an appeal from an order of the District Court affirming a decision of the Bankruptcy Court. The Bankruptcy Court granted a petition by Appellee (the bankrupt) to declare unenforceable a lien held by Appellant on Appellee’s car. The Court found the lien to be violative of Ohio’s Retail Installment Sales Act, Ohio Rev. Code § 1317.08, which renders unenforceable any retail installment sales contract that includes a charge for financing a “negative equity.” In re Sloan, 285 F.Supp. 1 (N.D. Ohio 1968). Appellant conceded that its lien was violative of O.R.C. § 1317.08. It argued, however,…