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MATTER OF QUEST INC. OF VIRGINIA

Bankruptcy No. 79-71-A, Complaint No. 2.

17 B.R. 359 (1982)

In the Matter of QUEST INCORPORATED OF VIRGINIA, Bankrupt. Gordon P. PEYTON, Trustee, Plaintiff, v. FIRST AMERICAN BANK, N.A., Defendant.

United States Bankruptcy Court, E.D. Virginia, Alexandria Division.

February 3, 1982.

Attorney(s) appearing for the Case

Herbert L. Karp, Alexandria, Va., for bankrupt.

Gordon P. Peyton, Alexandria, Va., trustee in bankruptcy.

Robert O. Tyler, Alexandria, Va., for plaintiff/trustee.

Richard A. Cooter, Alexandria, Va., Raymond S. Sczudlo, Washington, D.C., for defendant.

MEMORANDUM OPINION

MARTIN V.B. BOSTETTER, Jr., Bankruptcy Judge.

The plaintiff trustee and the defendant, First American Bank, N.A. ("Bank"), appear on cross filings of motions for summary judgment. At issue is whether the Bank's application to preexisting debts of substantially all the proceeds of a $150,000.00 loan of the Bank to the bankrupt, Quest Incorporated of Virginia ("Quest"), effected a preferential transfer under Section 60 of the Bankruptcy...

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