First Southern National Bank v. Sunnyslope Housing Ltd. Partnership

I do not agree with the majority that the bankruptcy court erred in its valuation of First Southern’s collateral under 11 U.S.C. § 506(a). In my view, a straightforward application of the Supreme Court’s decision in Associates Commercial Corporation v. Rash, 520 U.S. 953, 117 S.Ct. 1879, 138 L.Ed.2d 148 (1997), compels valuing First Southern’s collateral — a 150-unit apartment complex — in light of Sunnys-lope’s proposed use of the property in its plan of reorganization as affordable housing. I therefore respectfully dissent from the majority’s holding that Sunnyslope’s proposed use of the…