In Re Tarkio College

MEMORANDUM OPINION

ARTHUR B. FEDERMAN, Bankruptcy Judge.

Debtor objects to the amount of the claim of First Bank Investors’ Trust (“FBIT”). This is a core proceeding under 28 U.S.C. § 157(b)(2)(B) over which the Court has jurisdiction pursuant to 28 U.S.C. §§ 1334(b), 157(a), and 157(b)(1). For the reasons set forth below, I find that FBIT’s note has not been properly accelerated, and has therefore accrued interest throughout this bankruptcy at the contract rate of twelve per cent per annum, not the default rate of sixteen percent. I further find that the costs of collection sought by FBIT…