In the Matter of Thrift Shoe Co., Inc., Debtor. The National Cash Register Co. v. Curtis B. Danning, Receiver, and Thrift Shoe Co., Inc.

OPINION

SKOPIL, District Judge:

Appellant, The National Cash Register Co. (NCR), claims a security interest in cash registers sold to the debtor, Thrift Shoe Co., Inc. (Thrift), under a sales contract and security agreement.

Before the entire purchase price of the cash registers had been paid, Thrift filed a petition for an arrangement under Chapter XI of the Bankruptcy Act. Upon application of the receiver, Curtis B. Danning, the referee found that NCR’s financing statement failed to comply with California law. He declared that NCR had an unperfected security interest and that its lien was…