Wilson v. First National Bank

GOLDBERG, Circuit Judge:

I. Introduction

This bankruptcy case involves a revolving line-of-credit and accounts receivable financing arrangement entered into by the Missionary Baptist Foundation of America, Inc. (“the Debtor”) and the First National Bank at Lubbock, Texas (“the Bank”). The Debtor operated a group of affiliated nursing homes as separate corporations in Texas and other states. The Debtor had a chronic cash-flow problem, because its primary source of income was medicare and medicaid cost reimbursement payments that were typically not received until a month or more after services…