Salem National Bank v. Smith (In Re Smith)

MEMORANDUM AND ORDER

KENNETH J. MEYERS, Bankruptcy Judge.

This matter comes before the Court on the complaint of Salem National Bank (“plaintiff”) to determine the nature, extent and priority of liens. Plaintiff and defendant, the United States of America, have filed cross-motions for summary judgment. Plaintiff and defendant are secured creditors, each claiming a superior interest in the proceeds of debtors’ 1985 crops.

The undisputed facts show that debtors, over a period of years from 1972 to 1984, executed a total of ten promissory notes to defendant. To secure repayment of these notes,…