Lentz v. Bank of Colorado

MEMORANDUM AND ORDER

O’CONNOR, District Judge.

This action is presently before the court on appeal from the Bankruptcy Court. The stipulated issue is whether the Bank of Colorado lost its perfected and enforceable security interest because it took only a personal judgment against the bankrupt. The parties agree to the following facts: Jerry Hill executed and delivered various documents (promissory notes, security agreements and financing statements) giving the Bank a perfected and enforceable security interest in two promissory notes (hereinafter LDS Notes) naming Hill as the payee. The LDS…