In re Bennett

Citations

• 153 F. 673
• 82 C.C.A. 531
• 1907 U.S. App. LEXIS 4447

Syllabus

<p>1„ Bankruptcy — Distribution of Estate — Priorities under State Law.</p> <p>While a state law cannot of its own force determine priorities under a national bankruptcy law, Bankr. Act July 1, 1898, c. 541, § 64b(5), 30 Stat. 563 [U. S. Comp. St. 1901, p. 3448], which provides that “debts owing to any person who by the laws of the state * * * is entitled to priority” shall be given priority in the distribution of the bankrupt’s estate, adopts the law of the state, and makes it the applicable federal law in determining priorities.</p> <p>[Ed. Note. — Effect of national bankruptcy act on state insolvency laws and on assignments for benefit of creditors, see note to Carling v. Seymour Lumber Co., 51 C. O. A. 11.]</p> <p>2. Same — Claim fob Materials Furnished to Manufacturing Company— Kentucky Statute.</p> <p>Ky. St. 1903, § 2487, which provides, inter alia, that persons who shall have furnished materials or supplies for the carrying on of the business of any manufacturing company shall have a lien therefor on its property and effects involved in the business, when the same shall be assigned for the benefit of creditors, or shall in any way come to be distributed among creditors, whether by operation of law or by act of such company, which lien, as provided by following sections, is superior to any mortgage or incumbrance thereafter created, while it may not create a technical lion until the happening of one of the conditions mentioned, gives a substantial right in or inchoate lien upon the property from the date of Hie furnishing of the material or supplies which comes within the spirit and purpose of Bankr. Act July 1, 1898, c. 541, § 64b(5), 30 Stat. 563 [U. S. Comp. St. 1901, p. 3448], and on the bankruptcy of the company entitles such a claim to priority over the claims of general creditors.</p> <p>3. Same — Statutes—Construction—Kentucky Lien Statutes.</p> <p>Ky. St. 1903, | 2494, which provides that “no lien provided for in this article” shall attach, unless a