In Re H.J. Kristal, Dba Olivet Egg Ranch, Debtor. The Carnation Company v. William Lampi, Trustee, and Bancroft, Avery & McAlister

J. BLAINE ANDERSON, Circuit Judge:

The Carnation Company appeals a decision of the Bankruptcy Appellate Panel (BAP) holding that Carnation violated California Civil Procedure Code § 726 (West 1980), and therefore its security interest in a promissory note was void. We affirm.

I. BACKGROUND

Since the facts are thoroughly detailed in the opinion below, In re Kristal, 37 B.R. 659, 660-61 (Bankr. 9th Cir.1984), we offer only the following brief background sketch: Dr. Harold J. Kristal was indebted to Carnation and so gave Carnation a note secured by real and personal property. Kris-tal defaulted on…