Limor v. First National Bank (In Re Cumberland Molded Products, LLC)

OPINION

MARILYN SHEA-STONUM, Bankruptcy Judge.

This is an appeal from the bankruptcy court’s order granting summary judgment to Susan T. Limor (the “Trustee”), the chapter 7 trustee in the chapter 7 bankruptcy case of Cumberland Molded Products, LLC (the “Debtor”), on her adversary proceeding seeking to avoid the security interest of First National Bank of Woodbury (the “Bank”) in the Debt- or’s checking account (the “Checking Account”) and in proceeds of accounts receivable (the “Funds”) deposited in the Checking Account.

I. ISSUES ON APPEAL

Did the Bank lose either its perfected security…