Covey v. Citizens Savings Bank (In Re Pak Builders)

OPINION

WILLIAM V. ALTENBERGER, Bankruptcy Judge.

This matter is before the Court on cross motions for summary judgment seeking to determine the validity of alleged mortgages between the Debtor, PAK Builders, an Illinois General Partnership (“PAK” or “DEBTOR”), consisting of partners David Pugsley (“PUGSLEY”) and Martin Kracher (“KRACHER”), and the Defendant, Citizens Savings Bank (“BANK”). Despite being a partnership, the DEBTOR took title to real estate and executed mortgages as a corporation, giving rise to the current litigation. As a result of these irregularities, the Trustee, Charles E.…