Before WATERMAN, MOORE and SMITH, Circuit Judges.
J. JOSEPH SMITH, Circuit Judge:
This action was brought in the United States District Court for the Southern District of New York by Fine Fashions, Inc. to resolve conflicting claims to a fund of $6,409.85 held by Linde Factors Corp. (Linde). Linde has disclaimed any interest in the fund and has deposited it in escrow with the United States Attorney. Fine Fashions claims the fund as the beneficiary of an assignment to Linde by the Penn Garment Co. (Penn) of payments due or to become due under a contract with the United States. The United States claims the fund under a tax lien against Penn. The facts were stipulated, and the District Court, Richard H. Levet, J., rendered summary judgment for the United States. From this judgment, Fine Fashions appeals. We find no error, and affirm the judgment.
On April 12, 1957, Penn, a New Jersey manufacturer of women's apparel, was awarded a contract by the United States Military Clothing and Textile Supply Agency to manufacture 24,321 Air Force nurses' uniforms at a total price of $104,555.98. Penn was unable to purchase the necessary cloth on its own credit and asked appellant, a New York dress manufacturer, to purchase the necessary cloth and to furnish it to Penn. Appellant agreed to accommodate Penn by doing so.
On July 1, 1957, Penn and Linde, a New York financing corporation, entered into concurrent agreements. One was an assignment to Linde of all monies due or to become due to Penn under its Government contract. The second was a factoring arrangement under which Linde agreed to purchase Penn's accounts receivable for 75% of their face value; the remaining 25%, less commissions and expenses, was to be collected by Linde and paid to Penn after actual receipt of payment on the accounts.
A conference at the offices of Linde in New York by representatives of Linde, Penn, and Fine Fashions on July 2, 1957 resulted in the delivery of the following letter from Linde to Fine Fashions:
Re: Penn Garment Company "Gentlemen:
"We have been directed by Penn Garment Company to retain all moneys received under contract #DA36-243-QM-(CTM)-33 in the sum of $104,580.32, and which has been assigned to us. The purpose of the foregoing is to accumulate funds for the payment of piece goods purchased from Reeves Bros., and which purchase was guaranteed by you specifically for this contract.
"Funds are to be released only to Penn Garment Company, upon written authorization of your accountant Maurice Seifert, C.P.A. until all ...