George B. Azar, as Trustee in Bankruptcy of the Estate of W. T. Gibson, Bankrupt v. H. H. Morgan

The suit by appellant as trustee in bankruptcy was to declare as preferential under Section 60 of the Bankruptcy Act [11 U.S.C.A. § 96] payments made to a secured creditor within four months of the filing of an involuntary petition in bankruptcy. There is no question raised as to the validity of the real estate mortgages, appellee’s remaining securities. The payments consist of a transfer of certain personal property of the bankrupt to the appellee. Appellee’s remaining securities are a first and second mortgage on certain real estate. The real estate has not been sold but its market value…