Edward Terry Sanford

“ We therefore conclude that the Circuit Court of Appeals was in error in holding that, irrespective of the questions of the falsity of the statement and the reliance of the Bank upon it, the discharge should be granted upon the theory that the Bank was not justified in relying upon it when the credits were extended; and that if the statement when made was materially false and the Bank made the loans in reliance upon it, the discharge should have been denied. ”

“ In short, the lapse of time is only material in determining whether credit was extended within the period intended, while the statement was still binding on the bankrupt, and whether the creditor in fact extended the credit upon the faith of the statement. Here Lustgarten's statement expressly recited that it was made 'for the purpose of obtaining loans' from the Bank, and that it should be regarded by himself and the Bank as 'continuous and binding' and relied on by the Bank 'for all loans' until changed or recalled. ”

“ If they had been specifically decided by the District Court and only the Circuit Court of Appeals had failed to pass upon them, an appropriate course would be to remand the case to the Circuit Court of Appeals. Lutcher Lumber Co. v. Knight, 217 U.S. 257, 268, 30 S.C.t. 505, 54 L. Ed. 757; Brown v. ”