Bohm v. Farmers Savings Bank (In Re Crewse)

MEMORANDUM OPINION AND ORDER

FRANK P. BARKER, Jr., Chief Judge.

This is an action brought by the trustee against the defendant, Farmers Savings Bank, to account to the trustee for all proceeds from the sale of the bankrupt’s inventory and to turn over this amount to the trustee for the benefit of general creditors.

The bankrupt, Dale Crewse, formerly doing business as “Dale Crewse Auto Sales”, was a used-car dealer in Marshall, Missouri. The defendant, Farmers Savings Bank, loaned the bankrupt money to buy and/or trade automobiles.

When the bankrupt bought or traded an automobile with funds…