Unsecured Creditors' Committee v. Shawmut Worcester County Bank (In Re Ivy Properties, Inc.)

OPINION

JAMES F. QUEENAN, Jr., Bankruptcy Judge.

Cross motions for summary judgment pit the Creditors’ Committee (the “Committee”) against a lender who has a perfected security interest in the Debtor’s accounts but who has not recorded an assignment from the Debtor of real estate mortgages securing the accounts. The question presented is whether because of this lack of recording the Committee may avoid the lender’s interest in the mortgages through the exercise of its rights as a hypothetical bona fide purchaser of the mortgages from the Debtor. I hold that the question is controlled by…