IN RE HARTLEY

No. 86-3688.

825 F.2d 1067 (1987)

In re James Ross HARTLEY & Sharon Lee Hartley, d/b/a Hartley Trucking, Debtors. Suzanne Cotner MANDROSS, Successor-Trustee, Plaintiff-Appellee, v. PEOPLES BANKING COMPANY, Defendant-Appellant.

United States Court of Appeals, Sixth Circuit.

Decided August 7, 1987.


Attorney(s) appearing for the Case

Thomas D. Drake, William E. Clark, Drake, Phillips, Kuenzli & Clark, Findlay, Ohio, John C. Elam, Patricia Scanlon, Robert J. Sidman, argued, Columbus, Ohio, for defendant-appellant.

H. Buswell Roberts, argued, Nathan & Roberts, Toledo, Ohio, for plaintiff-appellee.

Before KENNEDY and MILBURN, Circuit Judges; and CONTIE, Senior Circuit Judge.


CORNELIA G. KENNEDY, Circuit Judge.

This case presents the question of whether a payment by a third party to a creditor on behalf of a debtor is a voidable preferential transfer when the debtor grants security interests to the third party in exchange for the payment. The District Court held that defendant-appellant Peoples Banking Company ("Peoples") received from James Ross Hartley ("the debtor") a preferential transfer of $500,000, voidable under 11 U.S.C. §...

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