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UNITED STATES v. BROCATO

Nos. 25687, 25747.

403 F.2d 105 (1968)

UNITED STATES of America, Appellant, v. Anthony G. BROCATO, Trustee in Bankruptcy for W. P. Tinsley, d/b/a Pick & Peck Drive-In Grocery, Bankrupt, Appellee. SMALL BUSINESS ADMINISTRATION, Appellant, v. John V. DENSON, Trustee in Bankruptcy for Raymond Curtis Mann, d/b/a Piggly Wiggly, Auburn, Alabama, Appellee.

United States Court of Appeals Fifth Circuit.

October 30, 1968.

Attorney(s) appearing for the Case

John C. Eldridge, Robert E. Kopp, Attys., Dept. of Justice, Washington, D. C., Edwin L. Weisl, Jr., Asst. Atty. Gen., William Wayne Justice, Ben Hardeman, U. S. Attys., for appellants.

Robert L. Thomas, Beaumont, Tex., for appellee Brocato.

John V. Denson, pro se.

Before COLEMAN and MORGAN, Circuit Judges, and HUNTER, District Judge.

LEWIS R. MORGAN, Circuit Judge:

The facts in each of these cases are identical in all relevant respects, so for that reason they were consolidated for the purpose of this appeal. In each of these cases the bankrupt was the recipient of a deferred participation loan made by a bank, the Small Business Administration insuring the bank against loss on each of these loans. The whole dispute here concerns the question of whether the SBA is entitled to priority in the bankruptcy...

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