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MATTER OF PRS PRODUCTS, INC.

No. 77-1747.

574 F.2d 414 (1978)

In the Matter of PRS PRODUCTS, INC., Bankrupt. James H. HERZOG, Trustee in Bankruptcy of PRS Products, Inc., Appellee, v. MANDAN SECURITY BANK, Appellant.

United States Court of Appeals, Eighth Circuit.

Decided April 11, 1978.

Rehearing Denied May 8, 1978.

Attorney(s) appearing for the Case

John C. McClintock, Rugby, N.D., argued, Carlan J. Kraft, Rugby, N.D., on brief, for appellant.

Stephen Plambeck, Fargo, N.D., argued, Robert L. Stroup II, Fargo, N.D., on brief, for appellee.

Before GIBSON, Chief Judge, LAY and STEPHENSON, Circuit Judges.

STEPHENSON, Circuit Judge.

The central issue on this appeal is whether certain transfers made by the bankrupt PRS Products, Inc. to Mandan Security Bank (Mandan) were voidable preferences in violation of the Bankruptcy Act, 11 U.S.C. § 96. The district court1 in an order of March 17, 1977, affirmed the bankruptcy court's decision that the transfers were voidable. Mandan appeals from that order.

PRS Products, Inc. began operation...

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