In the Matter of Middle Atlantic Stud Welding Co., Bankrupt. Appeal of Tru-Fit Screw Products Corp

OPINION OF THE COURT

HASTIE, Circuit Judge.

In a proceeding for an arrangement under Chapter XI of the Bankruptcy Act, Tru-Fit Screw Products Corporation has appealed from the district court’s order affirming the referee’s determination that the lien of a security agreement under which appellant was the secured party did not attach to the debtor’s accounts receivable acquired after the date of the agreement.

On May 31, 1971 Middle Atlantic Stud Welding Co., now the debtor, executed a promissory note, two security agreements, and a financing statement in favor of appellant. One of the security…