MHFA v. Indian Motocycle
This text of MHFA v. Indian Motocycle (MHFA v. Indian Motocycle) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Bluebook
MHFA v. Indian Motocycle, (1st Cir. 1995).
Opinion
USCA1 Opinion
UNITED STATES COURT OF APPEALS
FOR THE FIRST CIRCUIT
____________________
No. 94-2233
INDIAN MOTOCYCLE ASSOCIATES III
LIMITED PARTNERSHIP,
Appellant,
v.
MASSACHUSETTS HOUSING FINANCE AGENCY,
Appellee,
____________________
APPEAL FROM THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF MASSACHUSETTS
[Hon. Frank H. Freedman, Senior U.S. District Judge] __________________________
____________________
Torruella, Chief Judge, ___________
Cyr and Stahl, Circuit Judges. ______________
____________________
Paul R. Salvage, with whom Susan Luttrell Burns and Bacon & _________________ ______________________ _______
Wilson, P.C. were on brief for appellant. ____________
Kevin C. Maynard, with whom Mark D. Cress and Bulkley, Richardson ________________ _____________ ___________________
and Gelinas were on brief for appellee. ___________
____________________
October 2, 1995
____________________
CYR, Circuit Judge. Indian Motocycle Associates III CYR, Circuit Judge. ______________
Limited Partnership, a chapter 7 debtor, appeals from a district
court order reversing a bankruptcy court decision denying
appellee Massachusetts Housing Finance Agency's ("MHFA") motion
to compel the chapter 7 debtor to restore diverted cash collater-
al to the chapter 7 estate. We vacate the district court order
and remand to the bankruptcy court for further proceedings.
I I
BACKGROUND BACKGROUND __________
A. The Regulatory Agreement A. The Regulatory Agreement ________________________
In 1987, MHFA loaned Indian Motocycle Associates
Limited Partnership ("Indian Motocycle") $8.6 million to develop
low-income housing in Springfield, Massachusetts [hereinafter:
"the Project"]. Under a program authorized by the National
Housing Act ("NHA"), 12 U.S.C. 1701, 1709, 1715k et seq. __ ____
(1994); 24 C.F.R 250.1 (1994), the United States Department of
Housing and Urban Development ("HUD") coinsured the non-recourse
mortgage loan.1 In order to qualify for HUD coinsurance, Indian
Motocycle signed a "Regulatory Agreement," obligating it to
comply with pertinent HUD regulations and conditions whereby the
individual Indian Motocycle partners assumed personal liability
"for funds or property of the Project which come into their hands
and which they are not entitled to retain; and . . . for their
____________________
1NHA coinsurance permits the private lender to assign its
note and mortgage to HUD if unable to collect from the borrower.
See 12 U.S.C. 1710. ___
2
own acts and deeds or acts and deeds of their authorized agents
that are in violation of the provisions of this Agreement." The
Regulatory Agreement is incorporated into the mortgage by express
reference.
In addition to conveying a first mortgage on all real
property belonging to the Project, Indian Motocycle assigned all
its Project leases, rents, profits and income to MHFA "for the
purpose of discharging the [note]." See Mortgage 4; 12 U.S.C. ___
1715k(d)(2)(A). MHFA in turn authorized Indian Motocycle to
collect and apply Project rents to enumerated purposes, including
loan repayments and "reasonable expenses necessary to the opera-
tion and maintenance of the Project." Regulatory Agreement
3(b). Indian Motocycle's right to collect Project rents terminat-
ed upon default. See Mortgage 4. In the event the debtor were ___
to breach the Regulatory Agreement, MHFA or HUD would be entitled
to seek specific performance, injunctive relief, or the appoint-
ment of a receiver for the Project. See Regulatory Agreement ___
17-18. The mortgage and Regulatory Agreement were duly recorded
by MHFA.
In 1989, Indian Motocycle transferred its ownership
interest in the Project to Indian Motocycle Associates III
Limited Partnership, which assumed the MHFA note and mortgage; in
August 1992, it defaulted. MHFA promptly tendered notice of
default but took no immediate steps to acquire possession of the
Project (as by foreclosure) or the rents (as by appointment of a
receiver). Meanwhile, Indian Motocycle Associates III Limited
3
Partnership had withdrawn $65,000 from the rents on deposit in
the Project operating accounts, with which, inter alia, it _____ ____
retained counsel in contemplation of the commencement of a
voluntary chapter 11 proceeding ($35,000 retainer) and an accoun-
tant (Coopers & Lybrand) to prepare a prepetition audit of the
Project ($20,000).2 On December 15, 1992, following these
disbursements, Indian Motocycle Associates III Limited Partner-
ship (hereinafter: "debtor") filed its chapter 11 petition and
Free access — add to your briefcase to read the full text and ask questions with AI
USCA1 Opinion
UNITED STATES COURT OF APPEALS
FOR THE FIRST CIRCUIT
____________________
No. 94-2233
INDIAN MOTOCYCLE ASSOCIATES III
LIMITED PARTNERSHIP,
Appellant,
v.
MASSACHUSETTS HOUSING FINANCE AGENCY,
Appellee,
____________________
APPEAL FROM THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF MASSACHUSETTS
[Hon. Frank H. Freedman, Senior U.S. District Judge] __________________________
____________________
Torruella, Chief Judge, ___________
Cyr and Stahl, Circuit Judges. ______________
____________________
Paul R. Salvage, with whom Susan Luttrell Burns and Bacon & _________________ ______________________ _______
Wilson, P.C. were on brief for appellant. ____________
Kevin C. Maynard, with whom Mark D. Cress and Bulkley, Richardson ________________ _____________ ___________________
and Gelinas were on brief for appellee. ___________
____________________
October 2, 1995
____________________
CYR, Circuit Judge. Indian Motocycle Associates III CYR, Circuit Judge. ______________
Limited Partnership, a chapter 7 debtor, appeals from a district
court order reversing a bankruptcy court decision denying
appellee Massachusetts Housing Finance Agency's ("MHFA") motion
to compel the chapter 7 debtor to restore diverted cash collater-
al to the chapter 7 estate. We vacate the district court order
and remand to the bankruptcy court for further proceedings.
I I
BACKGROUND BACKGROUND __________
A. The Regulatory Agreement A. The Regulatory Agreement ________________________
In 1987, MHFA loaned Indian Motocycle Associates
Limited Partnership ("Indian Motocycle") $8.6 million to develop
low-income housing in Springfield, Massachusetts [hereinafter:
"the Project"]. Under a program authorized by the National
Housing Act ("NHA"), 12 U.S.C. 1701, 1709, 1715k et seq. __ ____
(1994); 24 C.F.R 250.1 (1994), the United States Department of
Housing and Urban Development ("HUD") coinsured the non-recourse
mortgage loan.1 In order to qualify for HUD coinsurance, Indian
Motocycle signed a "Regulatory Agreement," obligating it to
comply with pertinent HUD regulations and conditions whereby the
individual Indian Motocycle partners assumed personal liability
"for funds or property of the Project which come into their hands
and which they are not entitled to retain; and . . . for their
____________________
1NHA coinsurance permits the private lender to assign its
note and mortgage to HUD if unable to collect from the borrower.
See 12 U.S.C. 1710. ___
2
own acts and deeds or acts and deeds of their authorized agents
that are in violation of the provisions of this Agreement." The
Regulatory Agreement is incorporated into the mortgage by express
reference.
In addition to conveying a first mortgage on all real
property belonging to the Project, Indian Motocycle assigned all
its Project leases, rents, profits and income to MHFA "for the
purpose of discharging the [note]." See Mortgage 4; 12 U.S.C. ___
1715k(d)(2)(A). MHFA in turn authorized Indian Motocycle to
collect and apply Project rents to enumerated purposes, including
loan repayments and "reasonable expenses necessary to the opera-
tion and maintenance of the Project." Regulatory Agreement
3(b). Indian Motocycle's right to collect Project rents terminat-
ed upon default. See Mortgage 4. In the event the debtor were ___
to breach the Regulatory Agreement, MHFA or HUD would be entitled
to seek specific performance, injunctive relief, or the appoint-
ment of a receiver for the Project. See Regulatory Agreement ___
17-18. The mortgage and Regulatory Agreement were duly recorded
by MHFA.
In 1989, Indian Motocycle transferred its ownership
interest in the Project to Indian Motocycle Associates III
Limited Partnership, which assumed the MHFA note and mortgage; in
August 1992, it defaulted. MHFA promptly tendered notice of
default but took no immediate steps to acquire possession of the
Project (as by foreclosure) or the rents (as by appointment of a
receiver). Meanwhile, Indian Motocycle Associates III Limited
3
Partnership had withdrawn $65,000 from the rents on deposit in
the Project operating accounts, with which, inter alia, it _____ ____
retained counsel in contemplation of the commencement of a
voluntary chapter 11 proceeding ($35,000 retainer) and an accoun-
tant (Coopers & Lybrand) to prepare a prepetition audit of the
Project ($20,000).2 On December 15, 1992, following these
disbursements, Indian Motocycle Associates III Limited Partner-
ship (hereinafter: "debtor") filed its chapter 11 petition and
continued to operate the Project as a debtor in possession.3
Pursuant to the Regulatory Agreement, MHFA filed a motion to
compel the debtor "to restore [the $65,000 in cash collateral]
improperly diverted from the [chapter 11] estate in violation of
Title II of the [NHA]."4
B. The Bankruptcy Court Decision B. The Bankruptcy Court Decision _____________________________
The bankruptcy court ruled that the unauthorized
prepetition transfer of MHFA cash collateral to retain chapter 11
____________________
2An additional $5,000 was used to retain counsel to prepare
and file a proof of claim in behalf of Indian Motocycle Associ- __ ______
ates III Limited Partnership in an unrelated bankruptcy case.
Another $5,000 was transferred to a business owned by a principal
of the debtor's managing general partner, for a purpose not
disclosed in the appellate record. See infra notes 18 & 20. ___ _____
3The chapter 11 proceeding has since been converted to
chapter 7, see Bankruptcy Code 1112, 11 U.S.C. 1112, and a ___
chapter 7 trustee has been appointed, id. 702. ___
4At the same time, MHFA sought to sequester all postpetition
rents. Thereafter, on June 23, 1993, prior to denying the MHFA
motion to compel, the bankruptcy court granted an interim MHFA
motion for relief from the automatic stay. See Bankruptcy Code ___
362(d), 11 U.S.C. 362(d). MHFA represents that it has since
foreclosed upon all collateral except the monies at issue on
appeal.
4
counsel violated the Regulatory Agreement. In re Indian Moto- ___________________
cycle Assocs. III Ltd. Partnership, 161 B.R. 865, 867-68 (Bankr. __________________________________
D. Mass. 1994).5 The court nonetheless denied the motion to
compel the debtor to restore the $65,000 to MHFA, noting that
Regulatory Agreement violations by the debtor were "irrelevant,"
given that the motion to compel purported to assert MHFA's legal
rights against the debtor only and that no adversary proceeding
had yet been commenced against the debtor's general partners,
attorneys or accountants, the transferees in possession. Id. at ___
868.
During the bankruptcy court proceedings, MHFA had
relied on case law to the effect that a debtor's unauthorized
prepetition disbursement of rents securing an NHA-insured loan
warrants postpetition relief compelling the debtor and/or its
attorneys to restore the encumbered funds to the debtor estate.
Id. The bankruptcy court reasoned, however, that the requested ___
relief would undermine the Bankruptcy Code distribution scheme by
entitling $65,000 of the HUD/MHFA unsecured claim against the
chapter 11 estate to "super priority" status.
On intermediate appeal, the district court reversed and
remanded to the bankruptcy court for entry of an order compelling
the "[d]ebtor to restore the distributions diverted from the
____________________
5The bankruptcy court traced the source of the contested
monies directly to Project rents, as distinguished from individu-
al partner advances as suggested by the debtor. Id. at 867. On ___
the other hand, the court mistakenly characterized the entire
$65,000 distribution as a retainer fee for legal services. Id. ___
at 865; see infra note 6. ___ _____
5
estate." Massachusetts Hous. Fin. Agency v. Indian Motocycle _________________________________ ________________
Assocs. III Ltd. Partnership (In re Indian Motocycle Assocs. III ____________________________ ___________________________________
Ltd. Partnership), 174 B.R. 351, 357-58 (D. Mass. 1994) (citing _________________
Bankruptcy Code 105(a), 11 U.S.C. 105(a) (empowering the
court to "issue any order, process, or judgment that is necessary
or appropriate to carry out the provisions of this title")).
II II
DISCUSSION DISCUSSION __________
The debtor contends that the bankruptcy court correctly
determined that it lacked authority under Bankruptcy Code
105(a) to order a chapter 11 debtor even one who concedes that
it improperly diverted a secured creditor's collateral shortly
before filing its chapter 11 petition to return the collater-
al (or its monetary equivalent) to the chapter 11 estate. The
debtor argues that it no longer retained a property "interest"
in, or control over, the diverted collateral on the date it filed
its chapter 11 petition and, accordingly, the collateral never
became property of the chapter 11 estate amenable to administra-
tion. See Bankruptcy Code 541(a)(1), (6), 11 U.S.C. 541(a)- ___
(1), (6) (providing that estate is comprised of "all legal or
equitable interests of the debtor in property as of the commence- __ __ ___ _________
ment of the case," including "rents . . . from [real] property of ____ __ ___ ____
the estate") (emphasis added). Further, the debtor says, its
diversion of the encumbered rents did not alter the amount of ______
MHFA's claim against the debtor estate, which remained the
balance outstanding on the note at the date of the chapter 11
6
petition. Finally, the debtor argues that the bankruptcy court
correctly declined to follow those courts which have ordered
chapter 11 debtors in possession to restore to the debtor estate
diverted NHA-encumbered rents, see infra Section II.A.2, since ___ _____
those cases did not involve a non-federal agency like MHFA, nor
did those courts cite to legislative history indicating that
Congress intended that NHA policy override the debtor protection
policy underlying the Bankruptcy Code, including the right to
utilize monies in the debtor's possession to fund prepetition
retainers of chapter 11 counsel.
A. Injunctive Relief A. Injunctive Relief _________________
We review challenged rulings of law by the district
court de novo and contested findings of fact by the bankruptcy __ ____
court for clear error. See In re Laroche, 969 F.3d 1299, 1301 ___ _____________
(1st Cir. 1992).6 A bankruptcy court's decision granting or
denying injunctive relief pursuant to Bankruptcy Code 105(a) is
reviewed only for abuse of discretion. See, e.g., Western Auto ___ ____ ____________
____________________
6On appeal, neither party challenges the bankruptcy court
findings that (1) the entire $65,000 was disbursed as a retainer
for legal services, and (2) the entire disbursement breached the
Regulatory Agreement. Although this first finding is not an
accurate reflection of the record evidence, cf. supra note 2 & ___ _____
accompanying text; note 5, it does not infect the legal conclu-
sions reached by the bankruptcy court, nor our decision on
appeal. Nor need we address the bankruptcy court ruling that
these disbursements, as a matter of law, did not constitute _____
"reasonable expenses necessary to the operation and maintenance
of the Project." In re Indian Motocycle Assocs. III Ltd. Part- _______________________________________________
nership, 161 B.R. at 868 (citing United States v. Frank, 587 F.2d _______ _____________ _____
924 (8th Cir. 1978) (legal fees not "reasonable expenses" under
HUD regulatory agreement)). Similarly, we decline to consider
whether the prepetition disbursements for accounting services
violated the Regulatory Agreement, since the bankruptcy court
made no relevant findings.
7
Supply Co. v. Savage Arms, Inc. (In re Savage Arms, Inc.), 43 ___________ __________________ _________________________
F.3d 714, 719 n.8 (1st Cir. 1994). "Four principal factors
govern the appropriateness of permanent injunctive relief: (1)
whether the plaintiff has prevailed on the merits; (2) whether
the plaintiff will suffer irreparable injury absent injunctive
relief; (3) whether the harm to the plaintiff outweighs any harm
threatened by the injunction; and (4) whether the public interest
will be adversely affected by the injunction." Id. The present __
appeal implicates only the first two factors.
1. Injury 1. Injury ______
Although the bankruptcy court ruled that the debtor's
prepetition transfer of MHFA's cash collateral constituted a
conversion, it concluded that injunctive relief was unwarranted
since the amount owed MHFA by the chapter 11 estate remained the
same. To the extent this ruling suggests that MHFA sustained no
cognizable injury, we disagree. Since there is no indication
that MHFA's claim was over-secured, the conversion by the debtor
of the $65,000 cash collateral reduced MHFA's secured claim by
that amount, leaving MHFA with an unsecured claim for $65,000.
See Bankruptcy Code 506(a), (b), 11 U.S.C. 506(a), (b); see ___ ___
also id. 541(a)(6) ("Such estate is comprised of . . . [p]ro- ____ ___
ceeds, product, offspring, rents, or profits of or from property _____
of the estate [viz., the Project]") (emphasis added).
The advantage to holding a secured claim to these rents
in the chapter 11 proceeding is not to be underestimated. Since
the rents constituted "cash collateral" securing the MHFA note,
8
id. 363(a) ("cash collateral" includes "cash . . . whenever ___
acquired in which the estate and an entity other than the estate
have an interest and includes . . . rents . . . ."); cf. id. ___ ___
552(b) (governing enforceability of prepetition security interest
against postpetition rents), the rents could not have been
expended or transferred without MHFA consent, id. 363(c)(2)(A), ___
and bankruptcy court authorization conditioned on "adequate ___
protection" for MHFA's security interest, id. 363(c)(2)(B), ___
361, 363(e). Thus, restoration of the converted cash collateral
to the chapter 11 estate would have represented neither an empty
judicial exercise, nor a windfall or "super priority" to MHFA,
but appropriate recognition of the valuable legal advantage
enjoyed by the holder of a secured claim in a bankruptcy proceed-
ing.
Nevertheless, we do not think the bankruptcy court
ruling should be interpreted simply as a determination that
secured NHA lenders in these circumstances neither sustain
cognizable injury nor have any recourse for recovering their
collateral, but rather as a determination that MHFA prematurely ___________
sought extraordinary injunctive relief against the wrong party _____ _____
the chapter 11 debtor without first attempting to exhaust
other available remedies against nondebtors.
2. "Irreparability" of Injury; Adequacy of Remedy at Law 2. "Irreparability" of Injury; Adequacy of Remedy at Law ____________________________________________________
Every court which has considered the question has
determined that the NHA empowers HUD to enforce its prepetition
rights under a Regulatory Agreement notwithstanding the initia-
9
tion of a chapter 11 proceeding by or against the NHA borrower.
See, e.g., In re EES Lambert Assocs., 43 B.R. 689, 691 (Bankr. ___ ____ __________________________
N.D. Ill. 1984), aff'd, 63 B.R. 174 (N.D. Ill. 1986); In re _____ ______
Marion Carefree Ltd. Partnership, No. 93-33011, 1994 Bankr. LEXIS ________________________________
398, at *8-9 (Bankr. N.D. Ohio Mar. 17, 1994); In re Tampa Bay ________________
Briarwood Assocs., Ltd., 118 B.R. 126, 128-29 (Bankr. M.D. Fla. _______________________
1990); In re Garden Manor Assocs., 70 B.R. 477, 486 (Bankr. N.D. ___________________________
Cal. 1987); In re TWO-KMF Dev. Assoc., 63 B.R. 149, 151 (Bankr. _________________________
N.D. Ill. 1985); In re Hil'Crest Apartments, 50 B.R. 610, 613 ___________________________
(Bankr. N.D. Ill. 1985). Three principal grounds appear to
support postpetition enforcement of the NHA lender's prepetition
contract remedies notwithstanding the fact that the debtor no
longer has possession of, or access to, the precise collateral it
diverted prior to the petition.
First, the debtor's own partners are the parties
principally benefited by the prepetition diversion of the HUD
collateral most notably in this case the fees for retaining
professional assistance in fending off any MHFA foreclosure,
thereby safeguarding their personal financial investments7 at
the expense of low-income Project residents the intended
____________________
7The NHA allows HUD to coinsure non-recourse mortgages under
which the partners are relieved from individual liability for the
partnership obligation under the note. But the NHA conditions
that relief on the partners' agreement to assume personal liabil-
ity "for funds or property of the Project which come into their
hands and which they are not entitled to retain; and . . . for
their own acts and deeds or acts and deeds of their authorized
agents that are in violation of the provisions of this Agree-
ment." See In re Hil'crest Apartments, 50 B.R. at 612-13 (part- ___ __________________________
ners relieved of personal liability on partnership obligation in
return for their agreement to restrictions on transfer of rents).
10
principal beneficiaries of the NHA. See In re Garden Manor, 70 ___ ___________________
B.R. at 485; In re Hil'crest Apartments, 50 B.R. at 612; In re ___________________________ _____
EES Lambert, 43 B.R. at 690. But for the unauthorized diversion, ___________
the rents normally would have been applied, as appropriate,
toward Project maintenance. See In re Garden Manor, 70 B.R. at ___ __________________
483, 485 (regulatory agreement is not an "executory contract"
subject to rejection by debtor) (citing Bankruptcy Code 365).
Second, the assignment-of-rents provision in the
Regulatory Agreement is not merely a term in a private loan
agreement, but a contractual precondition to coinsurance which
Congress expected HUD to enforce in the public interest. See 12 __ ___ ______ ________ ___
U.S.C. 1709, 1715k, 1715v(c)(4) (listing numerous restrictions
on NHA mortgagors). Permitting partnership debtors, or their
individual partners, to divert public funds with any degree of
impunity threatens significant depletion of the treasury, see In ___ __
re Garden Manor, 70 B.R. at 483, and ultimately undercuts public ________________
confidence in the efficacy of federal housing, lending, and
insurance programs, thereby subverting Congress's announced
intention to promote private construction of low-income housing.
Id. ___
Third, these cases point out that there is no inherent
inconsistency between the policies of the NHA and the Bankruptcy
Code, in that the partnership debtor, and its individual part-
ners, remain free to retain chapter 11 counsel provided they do
not fund their retainers with the NHA lender's cash collateral.
11
Id. at 482, 486; In re TWO-KMF, 63 B.R. at 151; In re Hil'crest ___ _____________ _______________
Apartments, 50 B.R. at 612. __________
Notwithstanding the strong judicial support for these
general policy considerations, however, we are given great pause
at the prospect of fashioning extraordinary injunctive relief
absent either demonstrated compliance with the explicit require- ______
ments of the enabling provision in the Bankruptcy Code, see 11 ___
U.S.C. 105(a), or some clear indication in the NHA that Con- __
gress envisioned such an accommodation between the NHA and the
Bankruptcy Code. Thus, we think it is not enough simply to point
to the importance of safeguarding the integrity of the NHA loan
program, where neither the NHA, the Regulatory Agreement entered
into pursuant to the NHA, nor the Bankruptcy Code itself so much
as intimates that a bankruptcy court may fashion the extraor-
dinary "reimbursement" relief sought by MHFA.
No matter how compelling the public policy reasons for
formulating such extraordinary relief, it must be recognized that
the right and remedy are judge-made. Bankruptcy courts must be __________
especially cautious about embarking upon a lawmaking exercise in
circumstances where the injured party has neither demonstrated
that it has exhausted, nor even pursued, efficacious alternative _______
forms of relief which, if available, might well preclude a
finding that the relief sought from the bankruptcy court is
either "necessary or appropriate to carry out the provisions of
[the Bankruptcy Code]." Bankruptcy Code 105(a), 11 U.S.C.
105(a). See generally Lopez v. Garriga, 917 F.2d 63, 68 (1st ___ _________ _____ _______
12
Cir. 1990) (noting that injunction-seeker must first show that he
has "no adequate remedy at law"); see also Baker v. United ___ ____ _____ ______
States, 27 F.2d 863, 875 (1st Cir. 1928) ("Where courts intrude ______
into their decree their opinions on questions of public policy,
they in effect constitute the judicial tribunals as law-making
bodies in usurpation of the powers of the Legislature.") (cita-
tion omitted).8 We therefore decline to endorse the MHFA's
request for extraordinary injunctive relief under Bankruptcy Code
105(a), absent any showing or appearance that it is either
"necessary or appropriate to carry out the provisions" of the
Bankruptcy Code. See Bankruptcy Code 105(a), 11 U.S.C. ___
105(a).
B. Alternative Remedies B. Alternative Remedies ____________________
MHFA has not demonstrated that it is without other
viable remedies against the debtor's general partners, chapter 11
counsel, and/or its accounting firm, for restoring the diverted
collateral or its equivalent.
____________________
8Of course, federal courts may be expected to engage in
lawmaking where Congress "ambiguously addresses" an issue in
general terms, but deliberately leaves "an interstice" to be
filled by the courts in conformity with the purposes of the
statute. See Conille v. Secretary of Hous. and Urban Dev., 840 ___ _______ __________________________________
F.2d 105, 110 n.6 (1st Cir. 1988). This principle is of little
utility in the instant case, however, for two principal reasons.
First, there is no apparent interstice in the NHA, which express-
ly prescribes severe criminal penalties for violating HUD Regula-
tory Agreements, see 12 U.S.C. 1715z(19) ($250,000 fine, 5- ___
years' imprisonment), thereby providing a powerful deterrent to
unauthorized prepetition diversions of HUD collateral by debtors.
Second, the "reimbursement" remedy requested by MHFA not only
necessitates a judicial assessment of NHA policy, but of any
conflicting Bankruptcy Code policy. We do not regard this as an
appropriate invitation to engage in judicial lawmaking, except as
a last resort.
13
1. The General Partners 1. The General Partners ____________________
Whether or not it perfected its lien in the prepetition
rents, see infra Section II.B.2, MHFA could have sued the debt- ___ _____
or's general partners for the value of the diverted collateral
(or, at the very least, for any deficiency between the value of
its collateral and any amount recovered by MHFA on its $65,000
unsecured claim against the chapter 11 estate), based on the
Regulatory Agreement provision that expressly obligates the
partners "for funds or property of the Project which come into
their hands and which they are not entitled to retain; and . . .
for their own acts and deeds or acts and deeds of their autho-
rized agents that are in violation of the provisions of this
Agreement." See, e.g., Austin v. UNARCO Indus., Inc., 705 F.2d ___ ____ ______ ___________________
1, 4 (1st Cir.) (automatic stay normally does not foreclose suits
against general partners of bankrupt partnership), cert. dis- _____ ____
missed, 463 U.S. 1247 (1983); see also supra notes 4 & 7. MHFA ______ ___ ____ _____
has not alleged, nor does the appellate record disclose, that the
general partners are insolvent.
2. Chapter 11 Counsel 2. Chapter 11 Counsel __________________
a) Perfection of MHFA Lien a) Perfection of MHFA Lien _______________________
In order to obtain any meaningful relief against the
debtor or the transferees of the $65,000 in other venues, of
course, MHFA would have to demonstrate that it held a perfected
lien or security interest in the diverted rents; otherwise, as
property of the chapter 11 estate, see Bankruptcy Code 541(a)- ___
(6), any unperfected lien on the rents would be subject to
14
avoidance by the debtor in possession pursuant to its "strong
arm" powers. See id. 544(a) ("strong arm powers"), 1107(a); ___ ___
see generally In re Ryan, 851 F.2d 502, 512 (1st Cir. 1988) ___ _________ ___________
(trustee); In re Wabash Valley Power Ass'n, 114 B.R. 613, 617 _________________________________
(S.D. Ind. 1990) (debtor in possession). And once its unperfect-
ed lien was voided under Bankruptcy Code 544(a), MHFA would
have had no right to control the disposition of any portion of
the $65,000 in cash collateral which remained property of the
chapter 7 estate, cf. Bankruptcy Code 363(a), (c)(2), (e),9 ___
nor any right of recourse to lien foreclosure proceedings outside
the bankruptcy court against third party transferees who acquired
title to the rents prior to the debtor's chapter 11 petition,
cf., e.g., In re McBee, 714 F.2d 1316, 1326 (5th Cir. 1983) ___ ____ ____________
(perfected security interest in collateral continues after
collateral is conveyed). Nevertheless, we agree with the dis-
trict court that the MHFA security interest in these rents had
been perfected before the chapter 11 petition was filed. See In ___ __
re Indian Motocycle Assocs. III Ltd. Partnership, 174 B.R. at ___________________________________________________
356.
____________________
9Following appointment of the chapter 7 trustee, see supra ___ _____
note 3, all avoidance powers resided exclusively in the trustee,
not in the debtor. See Bankruptcy Code 1107(a), 11 U.S.C. ___
1107(a). We assume arguendo that the chapter 7 trustee would ________
attempt to avoid MHFA's lien in order that the net proceeds could
be applied to claims against the estate, including any MHFA
claim. For present purposes, however, we confine ourselves to an
assessment of the debtor's avoidance powers at the time of the
bankruptcy court ruling; that is, during the chapter 11 proceed-
ing.
15
Although the prepetition perfection of a security
interest in property of the estate normally is determined in
reference to applicable state law, see Butner v. United States, _____ ___ ___ ______ _____________
440 U.S. 48, 55 (1979), it is now well settled that the require-
ments for perfecting a federal agency's security interest in
property securing federally-insured loans a subject not
addressed by the NHA is controlled by federal common law, see ___
United States v. Kimbell Foods, Inc., 440 U.S. 715, 726 (1979); _____________ ____________________
Butner, 440 U.S. at 55 (noting that state law governing perfec- ______
tion of security interests applies "unless some federal interest
requires a different result");10 United States v. Landmark Park _____________ _____________
& Assocs., 795 F.2d 683, 685-86 (8th Cir. 1986) (rents); United _________ ______
States v. Floral Park Dev. Co., 619 F. Supp. 144, 147-48 (S.D. ______ _____________________
Ohio 1985) (rents); United States v. Borden Fin. Corp., 164 B.R. _____________ _________________
260, 264 (E.D. La. 1994) (rents); cf. Graham v. Security Sav. & ___ ______ _______________
Loan, 125 F.R.D. 687, 692 (N.D. Ind. 1989) (federal law controls ____
government's rights in litigation involving federally guaranteed
student loans), aff'd sub nom. Veal v. First Am. Sav. Bank, 914 _____ ___ ____ ____ ____________________
F.2d 909 (7th Cir. 1990); cf. also Conille v. Secretary of Hous. ___ ____ _______ __________________
and Urban Dev., 840 F.2d 105, 109 (1st Cir. 1988) (applying ________________
federal common law to litigation involving scope of HUD's obliga-
____________________
10Butner, a Bankruptcy Act case, remains viable precedent ______
under the Bankruptcy Code. See Wolters Village Ltd. v. Village ___ ____________________ _______
Properties, Ltd. (In re Village Properties, Ltd.), 723 F.2d 441, _________________ ______________________________
443 (5th Cir.), cert. denied, 466 U.S. 974 (1984). _____ ______
16
tions as NHA landlord, after finding NHA left this issue for the
courts).11 Under established federal common law, HUD's securi-
ty interest in post-default NHA rents normally is perfected
simply by recording a HUD mortgage containing an assignment of _________
rents, which places third parties on notice of the HUD lien. See ___
Landmark Park & Assocs., 795 F.2d at 685-86 (noting need for _________________________
uniform federal rule in face of discordant state rules relating
to perfection of security interests in rents); In re Westwood _______________
Plaza Apartments, Ltd., 154 B.R. 916, 920 (Bankr. E.D. Tex. 1993) ______________________
(same); cf. In re Executive House Assocs., 99 B.R. 266, 275-76 ___ ______________________________
(Bankr. E.D. Pa. 1989) (adopting Landmark Park "perfection" rule, _____________
but noting that other required means of perfection may be pre-
scribed in security agreement; e.g., an express declaration of
default). Of course, in our case the debtor concedes that the
HUD mortgage and Regulatory Agreement were duly recorded in the
appropriate registry of deeds, and that it had received a notice
of default under the note before disbursing the $65,000.12
____________________
11Like the district court, we see no policy basis for
distinguishing the instant case simply because MHFA, a state
agency, rather than HUD, is the party presently seeking return of
the collateral. Under the NHA coinsurance regime, MHFA will
assign the note to HUD in return for payment of any unrecovered
deficiency. See 12 U.S.C. 1710; see also supra note 1. In all ___ ___ ____ _____
events, given our determination, infra, that MHFA's security _____
interest was perfected under both federal and Massachusetts law, ____ ___
the distinction is inconsequential. See Conille, 840 F.2d at 110 ___ _______
(no need to adopt federal common law where there is "no 'signifi-
cant conflict between some federal policy or interest and the use
of state law'") (citation omitted).
12We note that the debtor's opening appellate brief did not
challenge the district court ruling that the MHFA security
interest in rents had been perfected. Issues presented for the
first time in a reply brief normally are deemed waived. See ___
17
Moreover, even if it were to be assumed that federal
common law does not govern the perfection of MHFA's security
interest, see supra note 11, the same result would obtain under ___ _____
Massachusetts law.13 In Prudential Ins. Co. of Am. v. Boston ____________________________ ______
Harbor Marina Co., 159 B.R. 616 (D. Mass. 1993), the district _________________
court held that a Massachusetts mortgagee which recorded its
assignment of rents in the registry of deeds as an adjunct to its
mortgage, "perfected" its lien in the rents so as to constitute
the rents "cash collateral" under Bankruptcy Code 363(a), and
that there was no need for the creditor to take possession of the
real property (e.g., as by foreclosure) or the rents (e.g., as by
____________________
Clarke v. Kentucky Fried Chicken, 57 F.3d 21, 27 (1st Cir. 1995). ______ ______________________
There is no basis for relief from waiver in the instant case.
Even in its reply brief, the debtor chose not to discuss the
implications of Kimbell or Butner on the choice-of-law question; _______ ______
instead simply stating its conclusion that Massachusetts law
should be applied. See Williams v. Poulos, 11 F.3d 271, 285 (1st ___ ________ ______
Cir. 1993) (issues adverted to in perfunctory manner, without
adequate argumentation, deemed waived).
13Although MHFA concedes that it did not file a financing
statement, the law in most states, including Massachusetts,
classifies an assignment of rents as an interest in real proper- ____ _______
ty. Thus, parties with security interests in future rents __
generated from encumbered real property need not comply with the
Uniform Commercial Code. See Mass. Gen. L. Ann. ch. 106, 9- ___
104(j) (excluding assignments of rent from Massachusetts U.C.C.);
see also, e.g., Commerce Bank v. Mountain View Village, 5 F.3d ___ ____ ____ _____________ ______________________
34, 39 (3d Cir. 1993); J.H. Streiker & Co. v. SeSide Co. (In re ___________________ ___________ _____
SeSide Co.), 152 B.R. 878, 882 (E.D. Pa. 1993); First Nat'l Bank __________ ________________
v. United States (In re Dorsey), 155 B.R. 263, 267 (Bankr. D. Me. _____________ ____________
1993); see generally Laurence D. Cherkis, Collier Real Estate ___ _________ ____________________
Transactions and the Bankruptcy Code 2.03[1], at 2-65 (1992). _____________________________________
Instead, the mortgage and assignment of rents need only be
recorded in the appropriate registry of deeds. See Mass. Gen. ___
Laws Ann. ch. 183, 4 (providing that unrecorded assignment of
rents is invalid against third parties, except for persons with
actual knowledge); see also In re Cadwell's Corners Partnership, ___ ____ ___________________________________
174 B.R. 744, 754 (Bankr. N.D. Ill. 1994) (same).
18
appointment of a receiver) prior to the filing of the bankruptcy
petition. Id. at 620-22 (recognizing distinction between "per- ___
fection," which governs secured creditor's rights against third
parties, and "enforcement" of liens, which controls creditor's
rights against its debtor; rejecting theory that such "inchoate"
or unenforced security interests are voidable under Bankruptcy
Code 544(a)); see also H.R. Rep. No. 95-595, 95th Cong., 1st ___ ____
Sess. 312 (1978) ("[T]he definition of 'lien' is new and is very
broad . . . [and] [i]t includes 'inchoate lien[s]'").14 The
Prudential court noted also that the "recordation" rule was fast __________
becoming the majority rule among the states, thus providing
further support for the "uniform" federal rule of decision
adopted in Landmark.15 See Conille, 840 F.2d at 112-13 (in ________ ___ _______
fashioning appropriate federal rule of decision, court should not
____________________
14The "possession" theory rejected in Prudential, supra, had __________ _____
essentially sounded the knell for most security interests in
rents in the bankruptcy context, since the holder of a secured
claim is precluded by the automatic stay from taking the very
steps required to reduce rents to possession. See, e.g., Bank- ___ ____
ruptcy Code 362(a)(1), (a)(3), (a)(4).
15See In re Park at Dash Point L.P., 121 B.R. 850, 855 ___ ________________________________
(Bankr. W.D. Wash. 1990), aff'd, 152 B.R. 300 (W.D. Wash. 1991), _____
aff'd, 985 F.2d 1008 (9th Cir. 1993); In re Vienna Park Proper- _____ _________________________
ties, 976 F.2d 106, 112-13 (2d Cir. 1992) (Virginia law); In re ____ _____
SeSide Co., 152 B.R. at 884; In re Wiston XXIV Ltd. Partnership, __________ __________________________________
147 B.R. 575, 580-81 (D. Kan. 1992), appeal dismissed, 988 F.2d ______ _________
1012 (10th Cir. 1993); Midlantic Nat'l Bank v. Sourlis, 141 B.R. ____________________ _______
826, 832 (D.N.J. 1992); Creekstone Apartments Assocs. v. RTC (In ______________________________ ___ __
re Creekstone Apartments Assocs.), 165 B.R. 845, 851 (Bankr. M.D. ________________________________
Tenn. 1993); SLC Ltd. V. v. Bradford Group West, Inc. (In re SLC __________ _________________________ _________
Ltd. V), 152 B.R. 755, 760-62 (Bankr. D. Utah 1993); In re KNM ______ _________
Roswell Ltd. Partnership, 126 B.R. 548, 554 (Bankr. N.D. Ill. _________________________
1991); In re Rancourt, 123 B.R. 143, 147-48 (Bankr. D.N.H. 1991); ______________
In re Foxhill Place Assoc., 119 B.R. 708, 711 (Bankr. W.D. Mo. ___________________________
1990); cf. Commerce Bank, 5 F.3d at 39 (recordation, coupled with ___ _____________
notice to tenants).
19
adopt forum state's law if it would frustrate NHA's purposes, but
may consult other states' law as a "source" for the more apt _
federal common law rule) (citing Kimbell Foods, Inc., 440 U.S. ___________________
715 (1979)).16 Accordingly, we conclude that the MHFA lien on
rents was fully perfected prior to the chapter 11 petition, hence
not voidable under Bankruptcy Code 544(a).
b) Law Firm b) Law Firm ________
MHFA concedes that it can proceed against the debtor's
counsel in the bankruptcy court only if the $35,000 in diverted
cash collateral, intended as a prepetition "retainer," remains
property of the estate, presumably as a fund held "in trust" for
the debtor. MHFA cites several so-called "collateral reimburse-
ment" decisions, see supra Section II.A.2, in which debtor ___ _____ ______
counsel have been directed to surrender to the bankruptcy estate _______
monies diverted to fund prepetition retainers. See, e.g., In re ___ ____ _____
Westwood Plaza Apartments, 154 B.R. at 923 n.11. MHFA itself _________________________
intimated at oral argument that it may request the chapter 7
trustee to recoup the putative trust monies from counsel, see ___
Bankruptcy Code 542, 11 U.S.C. 542, see also In re Sinder, ___ ____ ____________
____________________
16Though not retroactively applicable to this case, see In ___ __
re Barkley 3A Investors, 175 B.R. 755, 758 (Bankr. D. Kan. 1994), _______________________
the Bankruptcy Reform Act of 1994, Pub. L. 103-394 (Oct. 22,
1994), further supports the trend. Congress added a new subsec-
tion dealing separately with the question whether a prepetition
security interest in rents extends to postpetition rents. Under
prior law, the bankruptcy court was required to look to "applica-
ble nonbankruptcy law," usually state law, see Bankruptcy Code ___
552(b); the amendment now refers the court exclusively to the
terms of the parties' "security agreement." See id. 552(b)(2); ___ ___
In re Barkley, 175 B.R. at 758 (noting that, henceforth, "courts ______________
will not look to state law" to determine security interests in
rents).
20
102 B.R. 978, 982-83 (Bankr. S.D. Ohio 1989) (questioning whether
parties other than trustee and debtor in possession have standing
to bring 542 action), or may interpose objection to any fee
application submitted by debtor counsel, see Bankruptcy Code ___
330, 11 U.S.C. 330.17
The question whether the $35,000 "retainer" is subject
to turnover cannot be resolved on the present record, since it
may ultimately turn on the precise terms of any "retainer"
agreement between the debtor and its counsel. See, e.g., In re ___ ____ _____
McDonald Bros. Constr., Inc., 114 B.R. 989, 1002 (Bankr. N.D. ______________________________
Ill. 1990) (type of retainer is question of fact); see also In re ___ ____ _____
DLIC, Inc., 120 B.R. 348, 351 (Bankr. S.D.N.Y. 1990) (type of __________
retainer depends on intent of parties).18 Certain retainers
simply ensure counsel's availability to represent the client
(whether or not any legal services are ever performed), or
constitute prepayment for all future legal services to be per-
formed (e.g., a flat fee). In these circumstances, counsel
acquires full title to the retainer fee on the date of payment, __ ___ ____ __ _______
regardless whether legal services are ever performed. See In re ___ _____
McDonald, 114 B.R. at 997-98, 999-1000; see also In re Mondie ________ ___ ____ _____________
____________________
17For present purposes, we assume arguendo that the chapter ________
7 trustee would be amenable to MHFA's request that the trustee
prosecute a 542 turnover action against the transferees, since
the commensurate reduction in MHFA's unsecured claim could
increase the recoveries of other holders of unsecured claims.
See supra note 9. ___ _____
18The same rationale would apply to MHFA's recovery of the
$5,000 which the debtor advanced to retain bankruptcy counsel in
an unrelated bankruptcy case. See supra note 2. ___ _____
21
Forge Co., 154 B.R. 232, 235 (Bankr. N.D. Ohio 1993). Such a _________
retainer is precisely the same as the retainer fee paid Coopers &
Lybrand; it never became part of the property of the debtor
estate, and is subject to turnover only if it "exceeds the
reasonable value of services rendered." See Bankruptcy Code ___
329(b); In re McDonald, 114 B.R. at 995-96, 1003 n.18; cf. also ______________ __ ____
Bankruptcy Code 548(a)(2), 11 U.S.C. 548(a)(2) (avoidance of
prepetition "fraudulent" transfers where "insolvent" debtor
"received less than a reasonably equivalent value in exchange for
transfer").19
On the other hand, a "security" retainer is held by
counsel to secure payment of anticipated legal services yet to be
rendered. Under the ethical rules applicable in most jurisdic-
tions, these monies remain property of the client until applied
by counsel in payment of legal services actually performed. See ___
In re McDonald, 114 B.R. at 999; see also In re Saturley, 131 ______________ ___ ____ ______________
B.R. 509, 515 (Bankr. D. Me. 1991); In re Lilliston, 127 B.R. ________________
119, 120 (Bankr. D. Md. 1991) (portion of prepetition retainer
not earned prior to petition is property of estate); In re ______
Fitzsimmons Trucking, Inc., 124 B.R. 556, 558-59 (Bankr. D. Minn. __________________________
1991) (same). In the instant case, the debtor's equitable
"interest" in any unearned portion of the retainer, impressed
____________________
19Some courts have held that debtor counsel may use these
two types of retainers without first filing a fee application
under Bankruptcy Code 330. See, e.g., In re McDonald, 114 B.R. ___ ____ ______________
at 1002. In all events, these retainers remain subject to
scrutiny under Bankruptcy Code 329 (debtor counsel must report
all payments received for legal services). See also Fed. R. ___ ____
Bankr. P. 2017.
22
with MHFA's perfected lien, would have become property of the
estate on the date the chapter 11 petition was filed, see Bank- ___
ruptcy Code 541(a)(6), and presumably would remain subject to a
turnover order in a section 542 action brought by the debtor in
possession. See In re McDonald, 114 B.R. at 1000 n.13 (citing In ___ ______________ __
re Gerwer, 898 F.2d 730, 734 (9th Cir. 1990)). _________
Of course, if the $35,000 transfer constituted a
"security" retainer, counsel would be required to file a section
330 fee application to withdraw the retainer. In re Burnside _______________
Steel Foundry Co., 90 B.R. 942, 945 n.1 (Bankr. N.D. Ill. 1988). _________________
MHFA could then object to debtor counsel's retention of any
portion of the retainer not yet devoted to legal services which
were "actual [and] necessary," see Bankruptcy Code 330, and the ___
bankruptcy court presumably could order debtor counsel to surren-
der the unearned portion as "property of the estate." See id. ___ ___
105(a); 363(e); see also In re Westwood Plaza Apartments, 154 ___ ____ _________________________________
B.R. at 923 n.11.
We need not resolve the precise contours of the poten-
tial bankruptcy court remedies available to MHFA against the
debtor's law firm. Rather, it was MHFA's burden to demonstrate
the unavailability of any alternative remedy for recovering its ______________ __ ___
collateral. See supra Section II.A.2. Even if the $35,000 ___ _____
retainer is not property of the chapter 7 estate, hence not
subject to chapter 7 administration, MHFA has suggested no
plausible basis for concluding that it cannot trace and recover
the diverted collateral in a nonbankruptcy lawsuit directed
23
against the debtor's chapter 11 counsel (which is not protected
by the automatic stay, see Bankruptcy Code 362) to foreclose ___
upon its prior lien on the rents. On the other hand, if the _____ ____
retainer remains property of the chapter 7 estate, MHFA may
pursue its bankruptcy court remedies against the nondebtor _________
chapter 11 counsel.
3. Accounting Firm 3. Accounting Firm _______________
At oral argument, MHFA conceded that the debtor made
its $25,000 prepetition payment to Coopers & Lybrand for audit
services which were completed prior to the chapter 11 petition. _____ __
See supra Section I.A. Consequently, the debtor retained no ___ _____
legal or equitable "interest" in these monies as of the date of
the chapter 11 petition; and no right to, or interest in, these
monies ever became property of the chapter 11 estate. See ___
Bankruptcy Code 541(a)(6). MHFA could point to no conceivable
basis upon which the bankruptcy court, at this point in time,
could direct Coopers & Lybrand to turn over any part of its
$25,000 retainer to the chapter 7 estate. See id. 542, 11 ___ ___
U.S.C. 542 (third party, in possession of property of estate,
may be compelled to turn it over to trustee); United States v. ______________
Whiting Pools, Inc., 462 U.S. 198 (1983) (even a secured party in ___________________
possession of collateral constituting "property of the estate" is
subject to 542 turnover order). Moreover, MHFA has suggested
no other basis upon which either the debtor in possession or the
chapter 7 trustee could have avoided the prepetition transfer to
Coopers & Lybrand. See, e.g., id. 544 (avoidance of unper- ___ ____ ___
24
fected liens), 545 (avoidance of statutory liens), 547 (avoidance
of preferences), 548 (avoidance of fraudulent transfers).
Moreover, the limitations period for any such avoidance action
would appear to have lapsed. See id. 546(a)(1) (two years ___ ___
after order for relief); compare also In re Ollada, 114 B.R. 654, ____________ ____________
655 (Bankr. E.D. Mo. 1990) ( 542 has no comparable limitations
period) with In re De Berry, 59 B.R. 891, 898 (Bankr. E.D.N.Y. ____ _____ ________
1986) ( 542 turnover motion must be made within "reasonable
time").20
In all events, MHFA may have a direct cause of action
against Coopers & Lybrand outside the bankruptcy court. Cf. In _______ ___ __________ _____ ___ __
re Indian Motocycle Assocs. III Ltd. Partnership, 161 B.R. at 868 ________________________________________________
("[S]uch action . . . would involve only rights among nondebtors
in a case having no prospects of reorganization [and] I have
previously granted MHFA relief from [the automatic] stay."); see ___
generally In re McBee, 714 F.2d at 1326 (noting that perfected _________ ___________
security interest survives conveyance of collateral). The
automatic stay afforded no protection to Coopers & Lybrand, see ___
Bankruptcy Code 362, and MHFA may seek to execute its perfected
lien directly. At least this procedure would allay a troublesome
aspect of the present case, in that Coopers & Lybrand has never
received either notice or a hearing on MHFA's allegedly superior
claim to the $25,000.
____________________
20The same rationale would appear to preclude an order
compelling turnover of the $5,000 payment the debtor made to the
principal of its managing general partner, which might otherwise
have been voidable as a preferential transfer to an "insider."
See Bankruptcy Code 547; see also supra note 2. ___ ___ ____ _____
25
III III
CONCLUSION CONCLUSION __________
For the foregoing reasons, we decline MHFA's invitation
to fashion extraordinary judicial relief under Bankruptcy Code
105(a), absent a showing that the judicial lawmaking it inevita-
bly entails is either "necessary or appropriate to carry out" any
provision of the Bankruptcy Code in the circumstances presented.
Accordingly, we vacate the district court decision entitling MHFA
to an order directing the debtor to turn over to the chapter 7
trustee the diverted MHFA cash collateral or its monetary equiva-
lent. MHFA shall not be entitled to further relief in these
chapter 7 proceedings, except on order of the bankruptcy court,
after appropriate notice and hearing.
The district court order is vacated and the case is The district court order is vacated and the case is ___ ________ _____ _____ __ _______ ___ ___ ____ __
remanded to the bankruptcy court for further proceedings consis- remanded to the bankruptcy court for further proceedings consis- ________ __ ___ __________ _____ ___ _______ ___________ _______
tent with this opinion; costs to appellant. tent with this opinion; costs to appellant. ____ ____ ____ _______ _____ __ _________
26
Related
Butner v. United States
440 U.S. 48 (Supreme Court, 1979)
United States v. Kimbell Foods, Inc.
440 U.S. 715 (Supreme Court, 1979)
United States v. Whiting Pools, Inc.
462 U.S. 198 (Supreme Court, 1983)
Williams v. Poulos
11 F.3d 271 (First Circuit, 1993)
In Re Cynthia K. McBee D/B/A Oak Hill Gun Shop, Debtor. National Bank of Texas v. West Texas Wholesale Supply Company v. Republicbank-Austin, Appellee-Appellant
714 F.2d 1316 (Fifth Circuit, 1983)
Wolters Village, Ltd. v. Village Properties, Ltd.
723 F.2d 441 (Fifth Circuit, 1984)
United States v. Landmark Park & Associates
795 F.2d 683 (Eighth Circuit, 1986)
Marie Conille v. Secretary of Housing and Urban Development
840 F.2d 105 (First Circuit, 1988)
In Re Thomas Edward Ryan, Debtor. Peter M. Stern v. Continental Assurance Company
851 F.2d 502 (First Circuit, 1988)
Celso Lopez, A/K/A Celso Lopez Lopez v. R.D. Garriga
917 F.2d 63 (First Circuit, 1990)
In Re Foxhill Place Associates
119 B.R. 708 (W.D. Missouri, 1990)
In Re Hil'Crest Apartments
50 B.R. 610 (N.D. Illinois, 1985)
In Re McDonald Bros. Construction, Inc.
114 B.R. 989 (N.D. Illinois, 1990)
Mann v. Commonwealth Savings & Loan Ass'n (In Re Ollada)
114 B.R. 654 (E.D. Missouri, 1990)
In Re Wabash Valley Power Ass'n, Inc.
114 B.R. 613 (S.D. Indiana, 1989)
Matter of Tampa Bay Briarwood Associates Ltd.
118 B.R. 126 (M.D. Florida, 1990)
In Re Dorsey
155 B.R. 263 (D. Maine, 1993)
Prudential Insurance Co. of America v. Boston Harbor Marina Co.
159 B.R. 616 (D. Massachusetts, 1993)
In Re Indian Motocycle Associates III Ltd. Partnership
161 B.R. 865 (D. Massachusetts, 1994)
United States v. Floral Park Development Co.
619 F. Supp. 144 (S.D. Ohio, 1985)
Cite This Page — Counsel Stack
Bluebook (online)
MHFA v. Indian Motocycle, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mhfa-v-indian-motocycle-ca1-1995.