Laugharn

The District Court confirmed the order of the Referee in Bankruptcy to the effect that certain sums of money loaned by the appellant to the appellee’s bankrupt were not secured by a previously executed chattel mortgage to which we shall hereinafter refer. The matter is brought here for review pursuant to Sections 24, subs, a and b and 25, sub. a of the Bankruptcy Act, 11 U.S.C.A. §§ 47 , subs, a and b and 48, sub. a.

On May 10, 1938, the bankrupt, Irving Van Velsir, Jr., doing business as Van Velsir Trucking Company, executed a chattel mortgage on certain automobile equipment in favor of the appellant State Finance Company [hereinafter for convenience referred to as “Finance Co.”] to secure bankrupt’s promissory note in the sum of $18,-995.60 for money loaned. This mortgage indenture provided as follows: “This mortgage shall also be security for the repayment to the mortgagee of all future advances made by the mortgagee to the mortgagor, not exceeding the sum of $2,500.00, and also of all expenses incurred by the mortgagee in recovering possession of the mortgaged property, including court costs, attorney’s fees, and premium on bonds in claim and delivery, together with interest…