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IN RE ATLANTA INTERNATIONAL RACEWAY, INC.

No. 74-2787.

513 F.2d 546 (1975)

In the Matter of ATLANTA INTERNATIONAL RACEWAY, INC., Bankrupt. SECURITY NATIONAL BANK, Appellant, v. Stacey W. COTTON, Trustee, Appellee.

United States Court of Appeals, Fifth Circuit.

May 22, 1975.

Attorney(s) appearing for the Case

Frank B. Wilenskey, Richard P. Kessler, Jr., Morris W. Macey, Atlanta, Ga., for appellant.

R. Neal Batson, Atlanta, Ga., for Trustee.

Stacey W. Cotton, Atlanta, Ga., for appellee.

Heyman & Sizemore, Atlanta, Ga., Irving Picard, Securities & Exchange Comm., Washington, D. C., for other interested parties.

Before GIBSON, THORNBERRY and AINSWORTH, Circuit Judges.

AINSWORTH, Circuit Judge:

This appeal presents for review the question whether a provision for attorney's fees in a promissory note can be enforced in a Chapter X reorganization proceeding under the Bankruptcy Act when the creditor has not attempted to fulfill the preconditions to validity of a lien for such fees until after the Chapter X petition has been filed, and in the face of a prohibitory injunction against the enforcement of all liens on the bankruptcy estate...

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