Security Discount Co. v. Wesner

KERNER, Circuit Judge.

This is an appeal from an order of the District Court affirming the referee’s order disallowing the secured claim of the appellant in the sum of $2,400.

On May 6, 1941, the bankrupt, Peoria Braumeister Company, delivered a chattel mortgage to the appellant to secure its chattel mortgage note of $3,000. In return for this mortgage appellant gave bankrupt’s president a check for $2500. Repayment of the loan was to be over a seven months’ period at the rate of $100 per week. Payments totaling $600 were made, so that on July 7, 1941, the unsatisfied obligation was $2,400. A…