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IN RE MIFFLINBURG BODY CO.

No. 7876.

127 F.2d 59 (1942)

In re MIFFLINBURG BODY CO. Appeal of MIFFLINBURG BANK & TRUST CO.

Circuit Court of Appeals, Third Circuit.

Decided April 2, 1942.

Attorney(s) appearing for the Case

Samuel Handler, of Harrisburg, Pa. (Gilbert Nurick and Earl Handler, both of Harrisburg, Pa., on the brief), for appellant.

Harry S. Knight, of Sunbury, Pa. (Walter H. Compton, of Harrisburg, Pa., and Knight & Kivko, of Sunbury, Pa., on the brief), for Clarence P. Wynne, trustee in reorganization proceedings of Mifflinburg Body Company, appellee.

Before MARIS, JONES, and GOODRICH, Circuit Judges.

MARIS, Circuit Judge.

Mifflinburg Body Company and Mifflinburg Bank and Trust Company are Pennsylvania corporations. At various times prior to 1935 the company borrowed moneys from the bank by discounting trade acceptances with it. Occasionally the company substituted its own notes for some of the trade acceptances. No new loans were made after 1935. On April 1, 1938, the company executed a mortgage for $150,000 upon its plant and equipment to secure a bond issue...

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