Seals v. First National Bank of Amarillo (In Re Church & Institutional Facilities Development Corp.)

MEMORANDUM OPINION ON PRIORITY OF LIENS

JOHN C. AKARD, Bankruptcy Judge.

In order to resolve the lien priority issues raised by this Adversary Proceeding, the court must determine whether a bond indenture trustee exceeded its authority. Finding that the trustee did not exceed its authority, the court holds that the liens held by the Plaintiff and Defendant have equal priority.

FACTS 1

Promoters formed a number of corporations to solicit, issue, market and service church bonds. Their misdeeds led to a state court receivership for Trust Company of America (TCOA), which was the trustee for various…