- Branch Bank. & Trust Co. v. Constr. Super. Servs., Inc., Case No 13-1560 (4th Cir. May 22, 2014)
- Unperfected subcontractors lien is an interest in property as of the petition date for section 362(b)(3) and 546(b) purposes despite not having served notice of (i.e. perfected) such lien under state law pre-petiton. Subcontractors qualified under section 362(b)(3) exception to the automatic stay to perfect such liens post-petition.
- Procedural context:
- Appeal from the bankruptcy court for the Eastern District of North Carolina holding subcontractors qualified for 11 U.S.C. section 362(b)(3) exception to the automatic stay, reviewed de novo.
- Subcontractors supplied building materials and goods to the debtor-general contractor pre-petition. BB&T, the debtor's secured lender, held a properly perfected security interest in, inter alia, the debtor's accounts and accounts receivable. Post-filing the subcontractors filed a motion to clarify the extent of the automatic stay to determine whether their post-petition notice and perfection under North Carolina state law would fall within the section 362(b)(3) exception to the automatic stay.
- King, Shedd, and Wynn
Analysis: Bankrupt Borrowers Won’t Forfeit Coronavirus Aid Payments to Creditors Under Stimulus Package
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