Schneider v. Ray (In Re Roberts)

MEMORANDUM OF DECISION

JAMES A. PUSATERI, Bankruptcy Judge.

In this chapter 7 proceeding, the trustee seeks to avoid a security interest granted by the debtors to the Talmage State Bank pursuant to 11 U.S.C. § 544.

The issues presented for determination are:

1. Does the Talmage State Bank have a perfected security interest in the stored grain in question.

2. Does the trustee have priority over Talmage State Bank’s lien by virtue of an avoided landlord’s lien and 11 U.S.C. § 551.

Briefs and a stipulation have been filed and the Court is prepared to rule.

FINDINGS OF FACT

Talmage State Bank (TSB) has…