Mcgraw-Edison Credit Corporation v. Axton

533 F.2d 503 In the Matter of T. R. AXTON, SR. CORPORATION dba Hollandease Restaurant, a California corporation, Debtor. McGRAW-EDISON CREDIT CORPORATION, a Delaware Corporation (formerly EAC Credit Corporation), Petitioner-Appellant, v. T. R. AXTON, SR. CORPORATION, dba Hollandease Restaurant, a California corporation, Respondent-Appellee. No. 74-2344. United States Court of Appeals, Ninth Circuit. April 2, 1976. Arnold S. Malter (argued), Los Angeles, Cal., for petitioner-appellant. Herman E. Magidsohn (argued), of Coleman & Coleman, Los Angeles, Cal., for respondent-appellee. OPINION Before WRIGHT and WALLACE, Circuit Judges, and SOLOMON, * District Judge. EUGENE A. WRIGHT, Circuit Judge: 1 This appeal involves the question whether the time price differential (TPD) of a commercial contract for sale and installation of restaurant equipment constituted usurious interest within the meaning of California law. In affirming the bankruptcy referee, the district court held that it did. We reverse. 2 The California courts have held consistently that the TPD of a conditional sales contract is not limited by the state usury laws. Milana v. Credit Discount Co., 27 Cal.2d 335 , 163 P.2d…