National Discount Corporation v. William B. Tyson, Jr., as Trustee for Appliances, Inc., Bankrupt

HAYNSWORTH, Circuit Judge.

This is an appeal from an order requiring the mortgagee of chattels to account to the trustee of the bankrupt mortgagor for their value.

The Bankrupt, Appliances, Inc., was a corporation organized in 1953 for the purpose of operating a retail electrical appliance store. Arrangements were made with a finance company, the appellant here, to finance the major portion of its purchases to stock and its retail credit paper.

Under the “floor plan” arrangement, the bankrupt would order goods from a supplier with instructions to ship the goods to the bankrupt but to send all…