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MATTER OF GARY AIRCRAFT CORP.

No. 81-1378.

681 F.2d 365 (1982)

In the Matter of GARY AIRCRAFT CORPORATION, Debtor. GARY AIRCRAFT CORPORATION, Plaintiff-Appellee, v. GENERAL DYNAMICS CORPORATION, Defendant-Appellant.

United States Court of Appeals, Fifth Circuit.

July 28, 1982.

Attorney(s) appearing for the Case

Gilbert Lang Mathews, San Antonio, Tex., for defendant-appellant.

John H. Bennett, Jr., Fulbright & Jaworski, Cecil Jay Olmstead, Houston, Tex., for plaintiff-appellee.

Before WISDOM, POLITZ and TATE, Circuit Judges.

WISDOM, Circuit Judge:

I.

This dispute over the ownership of one airplane and of the proceeds of the sale of another requires us to determine the reach of the Federal Aviation Act and its impact on state law. We also explore the protection accorded buyers against secured creditors by state law.

In December 1971, Gary Aircraft Corporation ("Gary"), the plaintiff-appellee, entered into a letter of understanding stating its intention to purchase four...

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