Detention Management, LLC v. UMB Bank, NA (In re Municipal Corrections, LLC)

ORDER ON MOTIONS FOR SUMMARY JUDGMENT AND MOTION TO STRIKE

PAUL W. BONAPFEL, Bankruptcy Judge.

I. Introduction

In an unrecorded trust indenture agreement for the issuance of tax-exempt bonds, plaintiff Municipal Corrections, LLC (the “Debtor”), the Chapter 11 debtor in possession in this case, “pledged and assigned” its interest in its real property to secure its obligation to pay the bonds. The indenture trustee for the bondholders is the defendant UMB, N.A. (together with Bank of Oklahoma, N.A., the original trustee, the “Bond Trustee”). The Bond Trustee is the legal holder of the security…