Trinity 83 Development, LLC v. Colfin Midwest Funding, LLC (In re Trinity 83 Development, LLC)

AMENDED MEMORANDUM OPINION1

DEBORAH L. THORNE, UNITED STATES BANKRUPTCY JUDGE

This case requires the court to consider whether, in Illinois, the cancellation of a mistaken satisfaction of mortgage in the record system constitutes a transfer within the meaning of 11 U.S.C. § 101(54). As explained below, the cancellation did not constitute a “transfer,” and the court must dismiss the complaint for failure to state a claim.2

Background

In 2006, Trinity 83, LLC (“Trinity”) granted a mortgage and assignment of rents on its commercial real property located at 19100 S. Crescent Drive in Moke-na,…