IN RE VISITING HOME SERVICES, INC.

No. 79-4040.

643 F.2d 1356 (1981)

In re VISITING HOME SERVICES, INC., Bankrupt. John M. ENGLAND, as Trustee of the estate of Visiting Home Services, Inc., Bankrupt, Plaintiff-Appellee, v. The INDUSTRIAL COMMISSION OF UTAH, and Utah State Department of Social Services, Defendants-Appellants.

United States Court of Appeals, Ninth circuit.

Decided May 1, 1981.


Attorney(s) appearing for the Case

Franklyn B. Matheson, Asst. Atty. Gen., Salt Lake City, Utah, argued for defendants-appellants; Robert B. Hansen, Atty. Gen., Salt Lake City, Utah, on brief.

Linda Sorensen, Rothschild, Phelan & Montali, San Francisco, Cal., argued for plaintiffs-appellee; August B. Rothschild, Rothschild, Phelan & Montali, San Francisco, Cal., on brief.

Before WALLACE and CANBY, Circuit Judges, and QUACKENBUSH, District Judge.


QUACKENBUSH, District Judge.

FACTS

Prior to the filing of its petition in bankruptcy, Visiting Home Services, Inc. (VHS), a California corporation, was engaged in the business of providing services to needy persons pursuant to contracts with state and local agencies.

In 1974, VHS entered into a Security Agreement with the Sanwa Bank of California (Bank), by which the bank was given a security interest in all accounts, contract rights, and rights...

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