Matter of Schrewe

MEMORANDUM AND ORDER

SEAR, District Judge.

Appellant, American Savings and Loan (American), appeals the order entered by Bankruptcy Judge Thomas Brahney III in which he denied American a security interest in the proceeds of the Chapter 11 debt- or-in-possession’s pending lawsuit. The only issue on appeal is whether the term “rights,” as used in the standard mortgage contract, affects a mortgage, pledge, or hypothecation of a cause of action in which the mortgagee seeks damages for necessary repairs to the mortgaged property. The facts and arguments are adequately presented in the parties’…