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KAPELA v. NEWMAN

No. 80-1737.

649 F.2d 887 (1981)

Paul F. KAPELA et al., Defendants, Appellants, v. Samuel NEWMAN, Plaintiff, Appellee.

United States Court of Appeals, First Circuit.

Decided May 22, 1981.

Attorney(s) appearing for the Case

Kenneth A. Sweder, Boston, Mass., with whom Siri F. Boreske, and Kaye, Fialkow, Richmond & Rothstein, Boston, Mass., were on brief, for defendants, appellants.

Marshall F. Newman, Boston, Mass., with whom Philip Slotnick and Newman & Newman, P. C., Boston, Mass., were on brief, for plaintiff, appellee.

Before ALDRICH, CAMPBELL and BREYER, Circuit Judges.

BREYER, Circuit Judge.

A Bank makes a large loan to a corporation. A corporate shareholder guarantees repayment of this Basic Loan. At the same time the guarantor himself owes money to the corporation — a debt in which the Bank has a secured interest as partial collateral for its Basic Loan. The corporation goes bankrupt. The guarantor just before bankruptcy pays a sum of money to the Bank — money which he claims...

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