Phoenix Title and Trust Company v. Myles Stewart, Trustee of the Estate of Arthur Peabody and Olive Peabody

HAMLEY, Circuit Judge:

This is a proceeding in bankruptcy to determine the validity of a security interest in specific property asserted by Phoenix Title and Trust Company (Phoenix Title) . 1 The referee determined that the asserted security interest is void and ordered the company to turn over to the trustee in bankruptcy property obtained in the exercise of purported rights accorded by such, security interest. On review the district court approved and confirmed the referee’s order. Phoenix Title appealed and the trustee cross appealed. 2

Between July 23 and 26, 1956, Arthur Peabody and Olive…