Keywords: procedure .
Secured Debts > Documentation Secured Debts: Cases concerning whether a security interest has been properly filed1 Cases , IssueID 66 |
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Topic Description:Lines of Cases:
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No Ninth Circuit cases in database on this topic
Creditor, who had installed insulation in debtor's attic, objected to debtor's Chapter 13 plan because its claim was listed as unsecured. The court held that under Illinois law, the insulation was a fixture so creditor needed to file a UCC financing statement or a mortgage in order to have a secured claim.
The court said, "In determining whether an item is a fixture rather than a piece of personal property, the Illinois courts look at three factors: (1) the nature of the attachment to the real estate; (2) the item's adaptation to and necessity for the purpose for which the premises are devoted; and (3) whether or not it was intended that the item should be part of the realty."
The court found that the insulation was a fixture, saying "the insulation blanket that is installed in the attic... If removed, it would have not other utility for any other attic... As there was no fixture filing or recorded mortgage, American is an unsecured creditor and its objection to confirmation should be denied."
Creditor, who had installed insulation in debtor's attic, objected to debtor's Chapter 13 plan because its claim was listed as unsecured. The court held that under Illinois law, the insulation was a fixture so creditor needed to file a UCC financing statement or a mortgage in order to have a secured claim.
The court said, "In determining whether an item is a fixture rather than a piece of personal property, the Illinois courts look at three factors: (1) the nature of the attachment to the real estate; (2) the item's adaptation to and necessity for the purpose for which the premises are devoted; and (3) whether or not it was intended that the item should be part of the realty."
The court found that the insulation was a fixture, saying "the insulation blanket that is installed in the attic... If removed, it would have not other utility for any other attic... As there was no fixture filing or recorded mortgage, American is an unsecured creditor and its objection to confirmation should be denied."
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When you read a case, check to make sure that the case's decision applies to your local district. Do this by looking at which court has decided the case -- either the U.S. Supreme Court, a court of appeal (listed here in large type), or a district court (listed in small type). Your local district court judge is not bound to follow the opinion of judges from other district courts, but often they look to these cases for advice. Your local district, however, is bound to follow decisions in cases from it governing circuit court. You'll see fairly few Supreme Court case here, but those cases are also binding on all districts."
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