Lawrence Holzman v. L. H. J. Enterprises, Inc.

MERRILL, Circuit Judge:

In this appeal from order of a referee in bankruptcy, affirmed by the District Court, the issue is whether a nonpossessory security interest can, under California law, be taken as to after-acquired items of inventory of a retail merchant.

Appellant is trustee in bankruptcy for Pasqual Patrick Piro, Jr. On July 20, 1966, appellee sold to Piro, doing business as Boys Towne, an inventory of boys’ clothing, receiving in payment a promissory note in the sum of $18,584.-55, secured by an agreement giving appellee a security interest “in all of the inventory of boys’ clothing *…