United States v. Ocean Electronics Corp.

MEMORANDUM OF OPINION

GORDON THOMPSON, Jr., District Judge.

This is an appeal from the bankruptcy judge’s decision in Case No. 77-00406-K, declaring a security interest claimed by the Small Business Administration in proceeds from the sale of certain’ equipment owned by the debtor, Ocean Electronics Corporation, invalid and unenforceable against the debtor as debtor-in-possession. The appeal has been timely perfected, and jurisdiction is proper, pursuant to 28 U.S.C. § 1834.

The facts are not in dispute. In February 1973, San Diego Trust and Savings Bank (hereinafter “Bank”) advanced a loan in…