Szilagyi v. JPMorgan Chase Bank N.A. (In re Johnson)
Apr
18
2006
Ruling
Trustee was allowed to avoid bank liens due to recorded release and since bona fide purchaser would not have been on notice of the bank's equitable property interest.
Procedural posture
Plaintiff chapter 7 trustee brought an adversary proceeding against defendant banks, seeking avoidance of a recorded mortgage. The banks filed a counterclaim seeking a declaration that one bank's lien was valid and that it had a valid mortgage lien and security interest in a portion of the proceeds generated by a court-authorized sale of real property. The court held a trial on stipulated facts.
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Court
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