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MATTER OF KOSTER BAKERIES

125 Misc.2d 213 (1983)

In the Matter of the General Assignment for the Benefit of Creditors of Koster Bakeries, Inc., Assignor; Lawrence Sarf et al., Appellants; United States Small Business Administration, Respondent.

Supreme Court, Appellate Term, Second Department.

December 29, 1983

Attorney(s) appearing for the Case

Finkel, Goldstein & Berzow (Benjamin Finkel of counsel), for Lawrence Sarf, appellant. Jean Taylor for Local Union No. 3, appellant. Raymond J. Dearie, United States Attorney (Robert L. Begleiter and Michael A. Mulqueen of counsel), for United States Small Business Administration, respondent. Cohen, Weiss & Simon (Barbara S. Mehlsack of counsel), for priority wage creditors.

FARLEY, P.J., GEILER and WIDLITZ, JJ., concur.

MEMORANDUM.

Order affirmed, without costs.

The issue presented on appeal is whether in an assignment for the benefit of creditors the Small Business Administration (SBA) is entitled to priority, pursuant to section 191 of title 31 of the United States Code, over other unsecured claims, including the wage claims of appellants, which would otherwise have been entitled to priority under section 22 of the Debtor and Creditor Law.

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