California Thrift & Loan Ass'n v. Downey Savings & Loan Ass'n (In re Eagles)

OPINION

GEORGE, Bankruptcy Judge.

An appeal has been taken in this matter from a declaratory judgment permitting the plaintiff-appellee, CALIFORNIA THRIFT AND LOAN ASSOCIATION (“Cal Thrift”), to reinstate a note secured by a deed of trust on real property belonging to this debtor’s estate. This note and trust deed were held by the defendant-appellant, DOWNEY SAVINGS AND LOAN ASSOCIATION (“Downey Savings”). The lower court’s judgment was based upon a legal conclusion that the automatic stay in this case protected Cal Thrift, as a junior *98encumbrancer against the debtor’s real property. We…