Meikle

Plaintiff brought this action to recover $10,220 paid by the Fred Herrick Lumber Company, a bankrupt, to the First Exchange National Bank of Cceur d’Alene, Idaho, on October 5, 1928.

It is alleged in the first cause of action stated in the complaint that this payment was made within four months prior to January 14, 1929, when the Fred Herrick Lumber Company’s voluntary petition in bankruptcy was filed, and that at the time the payment was made the bank had reasonable cause to believe that the payment would constitute a preference. This cause of action was predicated upon section 60b of the Bankruptcy Act (11 USCA § 96 (b).

The second cause of action is based upon the second provision of section 67e of the Bankruptcy Act (11 USCA § 107 (e), which makes transfers within four months of bankruptcy null and void under the act where such transactions “are held null and void as against the creditors of such debtor by the laws of the state.”

The defendant demurred to the first cause of action stated on the ground that it did not state facts sufficient to constitute a cause of action and on the ground that the action was barred by the laws of Idaho (sections 5-218, or 5-224, of the…