In Re Siena Publishers Associates

DECISION ON MOTION TO DISBURSE CASH COLLATERAL TO HARRIS TRUST AND SAYINGS BANK

HOWARD SCHWARTZBERG, Bankruptcy Judge.

Apart from certain factual questions, the legal issue to be resolved in this contested matter is whether a warehouseman's lien primes a pre-existing perfected security interest. Harris Trust and Savings Bank (“Bank”) has applied to this court for an order directing that the net proceeds resulting from the liquidation of its security interest in the debtor’s inventory be distributed to it after the payment of all accrued fees owed to the Office of the United States trustee…