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IN RE LORETTO WINERY LTD.

BAP Nos. NC-86-1999-MeMoV, NC-86-2010-MeMoV.

81 B.R. 573 (1987)

In re LORETTO WINERY LIMITED, a Delaware corporation, Debtor. CROCKER NATIONAL BANK, a California banking corporation, et al., Appellants, v. Paul B. ANDREW, Trustee, Appellee.

United States Bankruptcy Appellate Panels of the Ninth Circuit.

Decided October 6, 1987.

Attorney(s) appearing for the Case

Anson Reinhart, Kornfield, Paul & Bupp, Oakland, Cal., Daniel A. McDaniel, Nomellini & Grilli, Stockton, Cal., for appellants.

Jeffrey J. Goodrich, Buchalter, Namer, Fields, Chrystitie & Younger, San Francisco, Cal., for appellee.

Before MEYERS, MOOREMAN and VOLINN, Bankruptcy Judges.

OPINION

MEYERS, Bankruptcy Judge:

I

This case involves the sole issue of whether a Producer's Lien established by California law may be avoided by the trustee in bankruptcy under Section 545(2) of the Bankruptcy Code ("Code"). Section 545(2) requires a comparison of the lienholder's rights against the rights of a hypothetical bona fide purchaser. The Bankruptcy Court found that the lien was voidable because the bona fide purchaser could defeat...

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