In re Rice

Summarized by J. Debbeler , Bricker Graydon LLP
14 years 2 months ago

Citation:

2011 Fed. App. 0015P, 2011 WL 6016229 (B.A.P. 6th Cir.)

Tag(s):

Ruling:

Assignee of a perfected security interest in a motor vehicle is not required to note its assignment or lien on the certificate of title in order to maintain its perfected status. The assignee of perfected security interest has standing to bring Motion for Relief From Stay under Sec. 362 . The security interest remains perfected post-assignment.

Procedural context:

Creditor brought Motion for Relief from Stay in Chapter 7 proceeding. Bankruptcy Court for the Northern District of Ohio ruled that creditor had no standing to bring the Motion. Creditor appealed to Bankruptcy Appellate Panel for the Sixth Circuit Court of Appeals.

Facts:

Debtor purchased a car, financing the purchase by granting a note and security interest to Wells Fargo Auto Finance Inc. (WFAFI). WFAFI noted its lien on the certificate of title. WFAFI then transferred its security interest to Wells Fargo Bank (WFB). Debtor defaulted on the note, and WFB repossessed the vehicle. Debtor filed for Chapter 7 relief. WFB moved for relief from stay.

Judge(s):

Boswell, Fulton, McIvor

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