Far East National Bank v. U.S. Trustee (In re Premier Golf Properties, LP)
- Citation:
- BAP No. SC-11-1508-HPaJu (August 13, 2012)
- Tag(s):
-
- Ruling:
- Affirming the bankruptcy court, the BAP held that golf course green fees and driving range fees was not part of the lender's cash collateral as it was not rents, proceeds, or profits of the lender's security interest.
- Procedural context:
- The bankruptcy court denied a motion by the Bank to prohibit debtor from using cash collateral. The BAP affirmed.
- Facts:
- Bank financed a golf club for $11,500,000. The loan was secured by a Deed of Trust, Security Agreement, Assignment of Leases and Rents and Fixture Filing, and a UCC-1 Financing Statement was filed. The security documents specifically referenced green fees and driving range fees from rentals, licenses and use or occupancy of the real property. Upon filing bankruptcy, the Debtor segragated prepetition cash and receivables from goods and inventory sold, but did not segregate revenue from greens fees and driving range fees.
- Judge(s):
- HOLLOWELL, PAPPAS, and JURY, Bankruptcy Judges
ABI Membership is required to access the full summary. Please Sign In using your ABI Member credentials. Not a Member yet? Join ABI now - it is absolutely worth it!
