In re Aerocolor, Inc.

CURTIS, District Judge.

This is a petition for review of a decision of the Referee in Bankruptcy declaring certain chattel mortgages executed by the bankrupt to be void as against creditors upon grounds which we shall presently consider.

The petitioner, Crocker-Citizens National Bank, first petitioned the Referee for leave to exercise a power of sale under two chattel mortgages executed by the bankrupt in its favor, referred to respectively as Aerocolor mortgage and the *85Web Offset mortgage, as security for a loan of $200,000 and as further security for advances thereafter to be made. The…