- 11 U.S.C.
Bruegge v. Farmers State Bank of Hoffman (In re Klasi Props. LLC)
Jan
18
2013
Ruling
Trustee could not avoid mortgage with terms that provided sufficient notice of bank's interest.
Procedural posture
Plaintiff chapter 7 Trustee filed a complaint pursuant to 11 U.S.C.S. § 544(a)(3) and § 11 (765 ILCS 5/11) of the Illinois Conveyances Act seeking to avoid defendant bank's mortgage. The complaint alleged that the mortgage was insufficient pursuant to Illinois law to provide constructive notice to a bona fide purchaser of the bank's interest and, therefore, could be avoided. Before the court were the parties' cross-motions for summary judgment.
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Court
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