Farina v. South Shore Bank (In Re Farina)

MEMORANDUM DECISION

FREDERICK A. JOHNSON, Bankruptcy Judge.

In this adversary proceeding, the debtor in possession, Michael P. Farina, seeks a determination that defendant South Shore Bank’s security interest in his aircraft is unperfected and that he has priority as a hypothetical lien creditor from the date of the petition. 1 South Shore Bank claims a perfected prepetition security interest.

In August of 1979, M.F. Trust, of which the debtor is the sole trustee, purchased an aircraft and executed a Security Agreement — Aircraft Chattel Mortgage granting South Shore Bank a security interest in…