Badger Mountain Irrigation District Secured Bondholders' Committee v. Badger Mountain Irrigation District (In re Badger Mountain Irrigation District)

GOODWIN, Chief Judge:

The Badger Mountain Irrigation District (the “District”) is in chapter 9 bankruptcy. Its Secured Bondholders’ Committee (the “Bondholders”) has certain lien rights on property in the District’s possession. The Bondholders claim that, notwithstanding bankruptcy, they have the power to enforce those lien rights. Specifically, the appeal and cross-appeal require us to decide whether the lien rights of the Bondholders extend to the District’s power to levy assessments, and whether the Bondholders’ lien is avoidable by the District as a municipal debtor.

I. FACTUAL AND…