Hempy v. Bank of Tokyo of California

In loaning the now bankrupt Lee company in excess of $7,000, the Bank of Tokyo took as security two passenger cars and one light truck belonging to the debtor. The vehicles, by the terms of the note, were “assign [ed], transfer [red] and deliver [ed]” to the bank. The debt- or retained possession of the cars and truck. Promptly after the pledge was made, the Department of Motor Vehicles of the state of California issued certificates of ownership, each reciting that the bank was the legal owner and the debtor-partnership was the registered owner.

*94There was no compliance by the debtor or…