Merchants' Nat. Bank v. Corr

Citations

• 221 F. 419
• 137 C.C.A. 217
• 1915 U.S. App. LEXIS 1349

Syllabus

<p>Bankruptcy <3=161—Preferences—Substitution of Liens.</p> <p>Defendant bank, holding as collateral warehouse receipts for raw material for use in a bankrupt’s factory, permitted the same to be withdrawn on trust receipts, to be held and sold for its benefit, but with knowledge from the past course of dealing that the bankrupt used it with other material in its factory and sold the finished product. Held, that the fact of such mixing of material did not give defendant a lien or claim on the proceeds of all of tlie sales of the factory, which would support an assignment of the accounts therefor within four months prior to the bankruptcy.</p> <p>l.Ed. Note.—For other liases, see Bankruptcy, Cent. Dig. §§ 261-263; Dec. Dig. <3=161.]</p> <p><Qr^Pt>r other capes see same topic & KRY-NUMBíOít in all Key-Numbered Digests & Indexes</p>