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IN RE SANDY RIDGE OIL CO., INC.

No. 86-1414.

807 F.2d 1332 (1986)

In re SANDY RIDGE OIL CO., INC., Debtor. SANDY RIDGE OIL CO., INC., Plaintiff-Appellee, v. CENTERRE BANK NATIONAL ASSOCIATION, et al., Defendants. and Halliburton Services, a Division of Halliburton Company, Defendant-Appellant, and Official Unsecured Creditors Committee, Intervenor-Appellee.

United States Court of Appeals, Seventh Circuit.

Decided December 3, 1986.

FLAUM, Circuit Judge.

The plaintiff-appellee, a Chapter 11 debtor-in-possession, seeks to avoid an improperly recorded Indiana mortgage. Section 544(a)(3) of the Bankruptcy Code, 11 U.S.C. § 544(a)(3) (1984), allows a bankruptcy trustee to avoid such an encumbrance when it would be voidable by a bona fide purchaser. The debtor-in-possession and the intervenor argue that the mortgage at issue does not give notice to a bona fide purchaser, and therefore the plaintiff...

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