United Airlines Inc v. US Bank Nat'l Assoc

Opinion

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For the Seventh Circuit Chicago, Illinois 60604

March 28, 2006

Before

Hon. RICHARD D. CUDAHY, Circuit Judge Hon. DANIEL A. MANION, Circuit Judge Hon. DIANE S. SYKES, Circuit Judge

Nos. 05—1752 & 05—1814

IN RE UNITED AIRLINES INC, Appeal from the United States District Court Debtor. for the Northern District of Illinois, Eastern Division US. BANK NATIONAL ASSOCIATION, Appellant, Cross-Appellee, Nos. 04 C 6643, 04 C 6885 v. John W. Darrah, Judge.

UNITED AIR LINES, INC., Debior—Appellee, Cross-Appellant.

ORDER

Page 21 of the slip opinion issued in this case on February 13, 2006, is amended as follows: the paragraph beginning at line 8 with the words, “Finally, U.S. Bank’s point,” and ending at line 14 with the word “setoff,” should be deleted and replaced with:

Finally, U.S. Bank’s point about holding a perfected security interest is beside the point. As of December 5, 2002, the effective date of this transfer, United was not in bankruptcy and the lending arrangement was proceeding as planned. United was current in its payments, and US. Bank had no reason to invoke its security interest to withhold payment. Accordingly, United is entitled to the full amount of the Category III Claims free from setoff.