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IN RE VELASCO

Bankruptcy No. 38001998.

13 B.R. 872 (1981)

In re Hugo VELASCO, M.D., Maria Teresa Velasco, Debtor.

United States Bankruptcy Court, W.D. Kentucky.

September 2, 1981.

Attorney(s) appearing for the Case

Richard D. Shapero, Joseph S. Elder, II, Louisville, Ky., for debtor.

Steven Lande, Los Angeles, Cal., C. Kinian Cosner, Jr., Nashville, Tenn., for Crocker National Bank of Los Angeles, Cal.

ORDER

MERRITT S. DEITZ, Bankruptcy Judge.

Conflict of laws questions rarely appear in Bankruptcy Court, but in this case we are required to exercise a choice of law in interpreting a sale/leaseback agreement between a Kentucky debtor and a California lessor. Choice of law is the threshold question; the fundamental issue is whether or not the sale/leaseback arrangement is a true lease, or whether it is in fact a secured loan of a sort which would permit the...

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