Bank of Lyons v. Cavanaugh (In Re Cavanaugh)

MEMORANDUM OPINION AND ORDER

ROBERT E. GINSBERG, Bankruptcy Judge.

This matter is before the court on cross motions for summary judgment of the Internal Revenue Service and the Bank of Lyons on the Bank of Lyons’ complaint to determine the relative priority of the lien claims of the Bank of Lyons and the Internal Revenue Service (the “United States”) in the proceeds of property sold by the Trustee, James Dvorak. For the reasons stated below, the court grants summary judgment for the United States.

FACTS

On August 30, 1983, the Debtor purchased the beneficial interest in Bank of Lyons Land Trust…