Corker

Stockgrowers' State Bank of Mountain Home v. Corker

Good Law
136 C.C.A. 222·220 F. 614·1915 U.S. App. LEXIS 2487
United States Court of Appeals for the Ninth CircuitFebruary 8, 1915No. 2368California774 words

Opinion

lead Opinion

Gilbert, J.

(after stating the facts as above). [1] The appellants contend that the court below erred in decreeing that the mortgage to the Stockgrowers’ Bank was a fraudulent preference. We find no ground for disturbing the conclusion of the court below that the bankrupt was insolvent at the time when the mortgage was made, that the effect of the mortgage was to enable the First National Bank, a creditor of the bankrupt, to obtain a greater percentage on its debt than any other creditor of the same class, and that at the time of taking the mortgage the defendants had reasonable cause to believe that the enforcement thereof would effect a preference within the meaning of the Bankruptcy Act. The record shows that, in addition to the debt which was at that time owing to the First National Bank and the claims which were represented by Wolfe, Trathen had outstanding debts of a large amount, and that the cashier of the First National Bank had directed the attention of his directors to the fact that there were unpaid drafts against Trathen, and that he testified that he considered the Trathen account unsatisfactory, because he had made demand for accrued interest,- and it was not forthcoming. In…

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