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IN RE COLUMBIA PACIFIC MORTG., INC.

Bankruptcy No. 80-01590, Adv. No. A81-0381.

22 B.R. 753 (1982)

In re COLUMBIA PACIFIC MORTGAGE, INC., Debtor. Murray L. JOHNSTONE, Sr., and Irene M. Johnstone, his wife, Plaintiffs, v. John MILLS, Trustee for Columbia Pacific Mortgage, et al., Defendants. and First National Bank of Oregon, an Oregon corporation, Defendant.

United States Bankruptcy Court, W.D. Washington.

February 22, 1982.

Attorney(s) appearing for the Case

Carl B. Goodwin, Jr., Short & Cressman, Seattle, Wash., for Community Federal Savings & Loan.

Ronald J. Trompeter, Beresford, Booth & Baronsky, Seattle, Wash., for First Nat. Bank of Or.

Willard Hatch, Quigley, Hatch, Loveridge & Leslie, Seattle, Wash., for Smiths.

Charles R. Eckberg, Lane, Powell, Moss & Miller, Seattle, Wash., for Mills, trustee for Columbia Pacific Mortgage, Inc.

SAMUEL J. STEINER, Bankruptcy Judge.

FACTS & NATURE OF ACTION

The debtor, Columbia Pacific Mortgage (CPM), a private mortgage lender in Richland, Washington, had lines of credit with several banks, including the defendant, First National Bank of Oregon (FNB). When CPM originated a loan, it drew on its line of credit for the funds with which to make the loan, received a promissory note secured by a deed of trust on realty from the borrower, and then assigned...

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