Marquette Bank Illinois v. Covey (In Re Classic Coach Interiors, Inc.)

OPINION

THOMAS L. PERKINS, Bankruptcy Judge.

This adversary proceeding commenced when Farmers & Mechanics Bank, I/k/a Marquette Bank Illinois (“BANK”) filed its Complaint for a declaratory judgment that it holds a valid security interest in dividends unlawfully paid by the Debtor and in the proceeds of the Chapter 7 Trustee’s actions to recover the dividends from the shareholders. This matter is before the Court on the Motion for Summary Judgment filed by the BANK. The motion is opposed by Charles E. Covey, Chapter 7 Trustee for Classic Coach Interiors, Inc., (“TRUSTEE”). The parties have…