In Re Barr

MEMORANDUM OF OPINION ON UTILITY DEPOSIT AND CAPITAL CREDITS OF AN ELECTRIC COOPERATIVE

JOHN C. AKARD, Bankruptcy Judge.

Issue

The issue before the court is whether Seminole National Bank’s (SNB’s) perfected security interest covers Debtors’ utility deposit and capital credits with Lea County Electric Co-op (Co-op). The parties stipulated that if the court finds that SNB has a perfected security interest in the utility deposit and capital credits, relief from the automatic stay as to those two items is proper.

Positions of the Parties

In this proceeding, SNB seeks to remove the automatic stay…