In the Matter of Bel Air Carpets, Inc., Dba Tiffany Carpets, Bankrupt. Joseph Potts, Trustee-Appellant v. Mand Carpet Mills

CHOY, Circuit Judge:

In this California bankruptcy case, Trustee in Bankruptcy Joseph S. Potts (the Trustee) appeals an order of the District Court affirming the denial by the Referee in Bankruptcy (the Referee) of the Trustee’s application to recover $3,871.92 in carpeting belonging to Bel Air Carpets, Inc., (the Bankrupt) received by Mand Carpet Mills (Mand) in an alleged transfer in violation of § 70(d)(1) of the Bankruptcy Act, 11 U. S.C. § 110(d) (l). 1 We affirm.

In late June or early July, 1969, the Bankrupt applied for a line of credit with Mand, submitting a financial statement dated…