In re the General Assignment for the Benefit of Creditors of Pasco Sales Co.

This is an application to direct the assignee for the benefit of creditors of Pasco Sales Co., Inc. to turn over and deliver to petitioner, Hempstead Bank (hereinafter Bank), the sum of1 $11,186.62. This sum represents the extent of the Bank’s security interest in the assignor’s inventory.

On February 26, 1970 the Bank entered into an inventory loan agreement with Pacific Supply Co., Division of P. S. C. Products Corp. (hereinafter Pacific Supply), which provided that the Bank ‘ ‘ will from time to time lend to the Borrower an amount or amounts up to 35% of the aggregate value * * * of such of…