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IN RE RYAN

No. 88-1093.

851 F.2d 502 (1988)

In re Thomas Edward RYAN, Debtor. Peter M. STERN, Plaintiff, Appellee, v. CONTINENTAL ASSURANCE COMPANY, Defendant, Appellant.

United States Court of Appeals, First Circuit.

Decided July 11, 1988.

Attorney(s) appearing for the Case

Bradford R. Martin, Jr., with whom Ryan & White, P.C., Springfield, Mass., was on brief, for defendant, appellant.

Peter M. Stern, Springfield, Mass., for plaintiff, appellee.

Before CAMPBELL, Chief Judge, TORRUELLA and SELYA, Circuit Judges.

LEVIN H. CAMPBELL, Chief Judge.

We are asked to decide, under federal bankruptcy law and Vermont property law, which of two claimants has priority to certain property owned by the debtor: a federal bankruptcy trustee, or the holder of a recorded, but defective, mortgage deed.

I.

The facts are undisputed. On November 11, 1975, debtor Ryan, a resident of Massachusetts, purchased a condominium in Hartford, Vermont. The property was subject to a $39...

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