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MATTER OF OLLAG CONST. EQUIPMENT CORP.

Nos. 1003, 1204, Dockets 78-5020, 78-5022.

578 F.2d 904 (1978)

In the Matter of OLLAG CONSTRUCTION EQUIPMENT CORP., Bankrupt. MANUFACTURERS AND TRADERS TRUST COMPANY, Appellant, v. Karl GOLDMAN, as trustee of Ollag Construction Equipment Corp., Bankrupt, Appellee.

United States Court of Appeals, Second Circuit.

Decided June 26, 1978.

Attorney(s) appearing for the Case

William H. Gardner, Buffalo, N.Y. (Hodgson, Russ, Andrews, Woods & Goodyear, Buffalo, N.Y., of counsel), for appellant.

Peter L. Costa, Buffalo, N.Y. (Goldman, Costa & Getman, Buffalo, N.Y., of counsel), for appellee.

Before KAUFMAN, Chief Judge, FEINBERG, Circuit Judge, and WERKER, District Judge.

IRVING R. KAUFMAN, Chief Judge:

When financial storms rage, unsecured creditors take on collateral as ballast. The security thus gained is often tenuous, however, for if bankruptcy is involved, it may be dissolved by the trustee's challenge. In this case, we are called upon to decide whether Manufacturers & Traders Trust Company ("the Bank") may enforce a security interest in the property of the bankrupt Ollag Construction Equipment Corp. ("Ollag"), or whether...

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