Scott v. Stocker

This suit was brought by Allan H. Stocker (appellee), trustee in bankruptcy for William Harvey Smith, a bankrupt, against L. E. Scott (appellant), to avoid an alleged preferential transfer under Section 60(b) of the Bankruptcy Act, 11 U.S.C.A. § 96(b). The district court granted appellee's motion for summary judgment on the issue of liability, the parties stipulated the value of the property which the appellee was held entitled to recover as a preference, and judgment was thereupon entered against the appellant for $27,000, with interest and costs. This appeal is on the issue of liability only, and involves primarily the question whether Oklahoma's Uniform Commercial Code, 12A O.S. 1961, § 101 et seq.,1 was applicable to, and did validate, a transaction entered into prior to the date on which the Code was to become effective. The facts are undisputed. On December 31, 1962, the bankrupt and his wife executed an installment note payable to the appellant, or order, in the principal sum of $85,904.74. On the same day the bankrupt and his wife executed an instrument denominated 'Financing Statement and Chattel Mortgage' under the terms of which they, as mortgagors, mortgaged to the appellant as security for payment of the installment note personal property described as: