Charles E. Siljeg, Trustee in Bankruptcy for Henry House Packing Co., Inc. v. The National Bank of Commerce of Seattle
Opinion
Opinion
Wallace, J.
Henry House Packing Co., Inc., filed a voluntary petition under Chapter VI of the Bankruptcy Act on November 27, 1967, and was adjudicated a bankrupt on February 12, 1968. The trustee brought this action-to recover an alleged preferential transfer under section 60a of the Bankruptcy Act, 11 U.S.C. § 96 (a), against The National Bank of Commerce of Seattle (Bank) claiming that the Bank had received certain inventory and accounts receivable from the bankrupt corporation within four months of the filing of the petition. The district court dismissed the action on the Bank’s motion for summary judgment. We reverse.
On August 8, 1966, Henry House Packing Co., Inc., (Henry House I) and the Bank executed a revolving chattel mortgage covering inventory of meat products, proceeds and existing and future accounts receivable. This security agreement was perfected under prior Washington law by filing appropriate documents with the county auditor. Wash. Rev.Code §§ 61.04.010 — .090, repealed by § 62A.10-102(vi).
On June 26, 1967, Henry House I was merged into another Seattle meat packer, Empire Packing Co. (Empire). On that date, the required documents were filed with the Washington…