Dunn v. Alexander Lumber Co. (In Re Kirk)

OPINION ORDER

MILLS, District Judge:

Bankruptcy appeal.

The issue: Does a secured creditor who enjoys a perfected security interest created by the assignment of a beneficial interest in a land trust automatically retain a perfected security interest in proceeds resulting from a sale of the trust res?

(If so, the creditor has priority over the bankruptcy trustee pursuant to Ill.Rev. Stat., ch. 26, § 9-301(l)(b)).

We reverse. The bankruptcy court’s determination that the secured party in this case retained a perfected security interest in the proceeds is in error.

I

The present action is by the…