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IN RE CROSS BAKING CO., INC.

No. 86-2038.

818 F.2d 1027 (1987)

In re CROSS BAKING CO., INC., Debtor. NEW HAMPSHIRE BUSINESS DEVELOPMENT CORPORATION, Plaintiff, Appellant, v. CROSS BAKING COMPANY, INC., Defendant, Appellee.

United States Court of Appeals, First Circuit.

Decided May 18, 1987.

Attorney(s) appearing for the Case

Russell F. Hilliard, Concord, N.H., for plaintiff, appellant.

Victor W. Dahar, Manchester, N.H., for defendant, appellee.

Before COFFIN and TORRUELLA, Circuit Judges, and PETTINE, Senior District Judge.

COFFIN, Circuit Judge.

This case presents an issue of first impression in this circuit concerning the effect of section 552(b) of the Bankruptcy Code on the rights of a secured creditor holding a floating lien on a debtor's accounts receivable. Specifically, we must determine whether a secured lender, who permits a borrower to use cash collateral during reorganization without formally protecting its security interest, is entitled to any portion of the post-petition...

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