In Re Wiston Xxiv Ltd., Partnership

MEMORANDUM OF DECISION

JAMES A. PUSATERI, Bankruptcy Judge.

This matter is before the Court on a dispute between the debtor as mortgagor and Balcor Pension Investors V (Balcor) as creditor-mortgagee. The debtor claims that an assignment of rents clause is not effective in Kansas unless, post-default, (1) the debtor has consented to the mortgagee collecting the rents, or (2) the mortgagee has begun a foreclosure proceeding and obtained the appointment of a receiver, or taken some equivalent action. The debtor asserts that the mortgagee had taken no such action by the time the debtor filed its…