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IN RE FIRST CITY MORTG. CO.

Bankruptcy No. 385-32296-A-11.

69 B.R. 765 (1986)

In re FIRST CITY MORTGAGE COMPANY, Debtor.

United States Bankruptcy Court, N.D. Texas, Dallas Division.

On Motion for Rehearing January 28, 1987.

Attorney(s) appearing for the Case

John Exline, Matthews, Kroemer, Johnson & Turner, Dallas, Tex., for debtor.

John Flowers, John H. Reid, Locke, Purnell, Boren, Laney & Neely, Dallas, Tex., for plaintiff.

FINDINGS OF FACT AND CONCLUSIONS OF LAW

HAROLD C. ABRAMSON, Bankruptcy Judge.

On September 4, 1985, First City Mortgage Company ("FCMC") filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code. Thereafter, FCMC has operated as a business and managed its assets as a Debtor in Possession. FCMC is in the business of servicing, originating, and warehousing mortgages.

In late 1981, FCMC and RepublicBank Dallas executed...

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