Thursday, August 1, 2013

Whether a Creditor must comply with Article 9 if the Trustee sells the assets - Answer: NO (9th Cir BAP 7-31-13)

In an unpublished decision  entitled

RENO SNAX SALES, LLC, (9th Cir BAP 7-31-13)

A chapter 7 trustee’s sale of assets under § 363 is not a disposition of collateral by a secured creditor under N.R.S. 482.516 or Article 9. The Coffee & Coolers trustee sold the assets, including the vehicles,as part of her duty in liquidating the property of the bankruptcy estate. And she did so as representative of all the creditors of the bankruptcy estate, not as an agent of Heritage Bank. Cf. Sigmon v. Miller-Sharpe, Inc. (In re Miller), 197 B.R. 810, 815 (W.D. N.C. 1996)(stating that § 544 does not make the trustee an agent for the creditors).


In re Reno Snax Sales, LLC

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