Hugo Black

“ For even if petitioner's claim as to California law is correct, the creditors in the Westinghouse case were certainly no more protected by that bond after the surety had paid out the full amount, than the materialmen and laborers are said to be protected here after the time for notifying the surety had expired. The phrase 'covered by the bond' as used in the Westinghouse case did not have the meaning petitioner ascribes to it but had reference rather to the class of creditors for whose benefit the statutory bond was executed. ”

“ True, we stated in both Prudence opinions that the federal law governing distribution of a bankrupt's estate should be applied with 'appropriate regard for rights acquired under rules of state law.' But the extent to which state law is to be so considered is in the last analysis a matter of federal law. ”