In re Lessler

CHASE, Circuit Judge.

On November 23, 1931, the bankrupt, then being the sole stockholder in the Toba Realty Corporation, gave a statement in writing to the Manufacturers’ Trust Company, New York, of her financial condition for the purpose of obtaining credit. The Manufacturers’ Trust Company then held a note of Toba Realty Corporation, indorsed by the bankrupt, for $1,000. On that day, this note was reduced by a payment of $100*. The bank, relying upon the financial statement then given by the bankrupt, .extended credit for the remainder in a thirty-day note for $900 signed by Toba Realty…