KALODNER, Circuit Judge.
This is an appeal from an Order in bankruptcy in which the District Court affirmed the finding of the Referee that a corporate chattel mortgage was partially invalid in that one of four notes which constituted the underlying obligation for the mortgage was paid and another was given without consideration.
The facts are as follows:
In 1950 Harry W. Kellum and his wife, Mira O. Kellum, formed Devaull's Inc., the bankrupt corporation...
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