In re Superior Cutter Co.
Opinion
lead Opinion
Byrne, J.
Gene May was a director and vice president of the bankrupt, Superior Cutter Co., Inc., a corporation. Being indebted to May for loans advanced, the corporation on September 14, 1953, gave him a promissory note in the amount of $6900 secured by an assignment of accounts receivable. The notice of assignment of the accounts receivable was recorded in the Los Angeles County Recorder’s office.
On November 16, 1953, the corporation gave May a second promissory note, secured by a chattel mortgage on a lathe and grinder, “in cancellation of the note dated September 14 and in lieu of the agreement of September 14”. The chat *586 tel mortgage was never recorded. In January, 1954, the corporation delivered the possession of the lathe and grinder to May in consideration of the cancellation of the note.
On February 16, 1954, the corporation filed a voluntary petition in bankruptcy and on the same date the orders of adjudication and of general reference were filed. A petition for turn over order on the lathe and grinder was filed by the trustee on March 19, 1954, and the referee issued an order to show cause which was set for hearing on March 30,1954.