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IN RE MERTS EQUIPMENT CO.

No. 76-56-ALB.

438 F.Supp. 295 (1977)

In re MERTS EQUIPMENT COMPANY, Bankrupt. UNITED STATES FIDELITY AND GUARANTY COMPANY, Appellant, v. J. L. LEACH, trustee, Appellee.

United States District Court, M. D. Georgia, Albany Division.

October 4, 1977.

Attorney(s) appearing for the Case

Walter H. Burt, III, Burt, Burt & Rentz, Albany, Ga., Jeffrey L. Sakas, Jessee, Ritchie & Duncan, Atlanta, Ga., for U. S. Fidelity & Guaranty.

E. Lewis Adams, Albany, Ga., for Trustee J. L. Leach, Albany, Ga.

OWENS, District Judge:

In this bankruptcy appeal, United States Fidelity and Guaranty Co. (U.S.F. & G.) challenges the decision of the bankruptcy judge that it had no secured interest in the bankrupt's equipment. U.S.F. & G. claimed it was secured by virtue of a master surety agreement which it entered into with the bankrupt. The agreement supposedly created an equitable lien on the equipment in question. The bankruptcy judge refused to find such a lien and...

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