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Brock v. Branch Banking & Trust Co. (In re Johnson)

Brock v. Branch Banking & Trust Co. (In re Johnson)

Ruling
Enabling loan exception did not protect bank from avoidance of security interest not perfected within 20 days of debtor's receipt of collateral.
Procedural posture

Defendant bank appealed an order of the U.S. Bankruptcy Appellate Panel (BAP) for the Sixth Circuit ruling in favor of plaintiff trustee, holding that because perfection of the bank's security interest did not occur within 20 days of the debtor's receiving a new pick up truck secured by the bank, the enabling loan exception of 11 U.S.C.S. § 547(c)(3) was not available to protect the bank's interest from avoidance as a preferential transfer.

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Court :
Judge or Jurisdiction information not available
Consumer opinion summary, case decided on July 02, 2010 , LexisNexis #0910-104