Old Stone Bank v. Tycon I Building Limited Partnership

OPINION

WILKINSON, Circuit Judge:

This appeal involves a dispute between a secured creditor and the bankruptcy estate of a debtor over an earnest money deposit forfeited when the sale of the real estate securing the debt failed to close. The district court affirmed the bankruptcy court’s decision to award the deposit to the debt- or’s estate.

We reverse. The broad wording of the deed of trust covering the real estate granted appellant Old Stone Bank a security interest in the property itself and in revenue derived from use of the property. The earnest money deposit was paid in exchange for…