Bergquist v. First National Bank of St. Paul (In Re American Lumber Co.)

RENNER, District Judge.

The defendant First National Bank of St. Paul (hereinafter, the “Bank”) appeals the decision of the Bankruptcy Court 1 granting judgment in favor of plaintiff Edward Bergquist, the trustee in bankruptcy of American Lumber Company (hereinafter, the “bankrupt” or “ALC”), finding that the transfers of security interests in inventory and equipment by the bankrupt to the Bank constituted voidable preferences under section 60 of the Bankruptcy Act, 11 U.S.C. § 96, that said transfers were fraudulent under sections 67(d)(2) and (3) of the Act, 11 U.S.C. § 107(d)(2) and (3), 2…