Diversified Lending Services, Inc. v. Bond (In Re Bond)

MEMORANDUM OPINION

SMALKIN, District Judge.

This is an appeal from the Bankruptcy Court for this District, Chief Judge Mannes presiding. The issues have been briefed, and no oral argument is needed.

The decisive question is whether the debtor’s prepetition assignment of rents to Diversified constituted those rents as cash collateral in the debtor’s Chapter 11 case. The property from which the rents flow is subject to a duly recorded first deed of trust (equivalent to a mortgage in the usages prevalent in the D.C. suburbs of Maryland) in favor of appellee Citizens Bank, which was not foreclosed…