IN RE SOUTHERN INDUS. BANKING CORP.

Adv. No. 3-83-00372.

92 B.R. 297 (1988)

In re SOUTHERN INDUSTRIAL BANKING CORPORATION, Debtor. Thomas E. DUVOISIN, Liquidating Trustee, Plaintiff, v. William and Hazel ANDERSON, et al., Defendants.

United States Bankruptcy Court, E.D. Tennessee.

October 14, 1988.


Attorney(s) appearing for the Case

J. Thomas Jones, Doris C. Allen, John A. Lucas, Jeffrey S. Norwood, and Mary M. Testerman, Knoxville, Tenn., for plaintiff.

Wagner, Myers, & Sanger, P.C., Knoxville, Tenn., Michael H. Fitzpatrick, J. Michael Winchester, Warren R. Webster, David Buuck, Knoxville, Tenn., John Dugger, Richard C. Jessee, Morristown, Tenn., J. Christopher Kirk, Knoxville, Tenn., Carleton E. Bryant, IV, John F. Weaver, James S. Tipton, Art Roberts, Jr., P.C., B.J. Reed, Knoxville, Tenn., Ferdinand Powell, Jr., Johnson City, Tenn., John P. Newton, Jr., John K. Harber, Ron Cunningham, Dexter Christenberry, Deke W. Brackett, Knoxville, Tenn., James C. Blackburn, Memphis, Tenn., James E. McCollum, Jerome Templeton, John H. Fowler, Ken E. Morrow, Craig J. Donaldson, William R. Banks, John Foley, Knoxville, Tenn., Joseph Q. Hunter, James D. Estep, III, Tazewell, Tenn., Joe Tipton, Knoxville, Tenn., Edward H. Moody, Morristown, Tenn., David A. Whitney, Scott R. Fransen, Knoxville, Tenn., Phillips & Hale, Rogersville, Tenn., C. Dwaine Evans, Morristown, Tenn., R. Louis Crossley, Byron D. Bryant, Knoxville, Tenn., Derry O. Jackson, Knoxville, Tenn., L. Kirk Wyss, Morristown, Tenn., Thomas McKinney, Jr., Kingsport, Tenn., Francis W. Headman, Knoxville, Tenn., Stanifer & Stanifer, Tazewell, Tenn., Mary B. Leibowitz, Knoxville, Tenn., Carl P. McDonald, Maryville, Tenn., Alan M. Parker, Knoxville, Tenn., Noe & Travis, Morristown, Tenn., Michael Nolan, Gullett, Sanford, Robinson, Nashville, Tenn., Joseph B. Yancey, Haynes, Meek, Summers & Mabry, John B. Waters, III, J.G. Christenberry, Knoxville, Tenn., Norman F. Walawender, Buffalo, N.Y., Floyd R. Hodge, John M. Norris, James L. Kennedy, Knoxville, Tenn., Jim Stambaugh, Morristown, Tenn., Herbert S. Moncier, Knoxville, Tenn., A. Wayne Henry, Loudon, Tenn., Gary E. Brewer, Morristown, Tenn., Poore, Cox, Baker, Ray & Byrne, Robert H. Watson, Jr., Lewis S. Howard, William Skaggs, Jr., Walter B. Johnson, Jack B. Draper, Knoxville, Tenn., Greg W. Eichelman, Morristown, Tenn., Joe E. Magill, Clinton, Tenn., W.W. Davis, Robert Haws, Earl S. Ailor, Howard G. Hogan, Knoxville, Tenn., Byron Trauger, Nashville, Tenn., Gerald C. Russell, Maryville, Tenn., Dean B. Farmer, Charles H. Child, Richard E. Faires, Knoxville, Tenn., Charles Gordon, Powell, Tenn., David J. Poss, Knoxville, Tenn., G. Rhea Bucy, Nashville, Tenn., Ray, Farmer & Baumgartner, Joseph J. Levitt, Jr., Pryor, Flynn & Priest, Wade Boswell, Knoxville, Tenn., Robert N. Navratil, Maryville, Tenn., David E. Smith, Knoxville, Tenn., Joe Costner, Thomas DePersio, Oak Ridge, Tenn., Eugene McCullough, Lockett, Slovis & Weaver, Knoxville, Tenn., Richard A. Spivey, Kingsport, Tenn., Walker & Walker, P.C., Mack A. Gentry, Robert J. Bird, Knoxville, Tenn., Billy P. Sams, Oak Ridge, Tenn., Clifford C. Cruze, Knoxville, Tenn., James R. Kelley, Nashville, Tenn., Daniel J. Goodman, James H. Hickman, III, Lawrence M. House, Marty McDonald, Knoxville, Tenn., Jack Rose, Fort Smith, Ark., David E. Rodgers, Anthony Farmer, Wilson S. Ritchie, Knoxville, Tenn., Douglas Q. Wickham, Raleigh, N.C., Stephen K. Garrett, Knoxville, Tenn., Edward E. Saleeby, Hartsville, S.C., Wade F. Smith, Jefferson City, Tenn., Richard M. Mayer, R. David Benner, Daniel L. Merriman, Wayne A. Whitehead, Jerome Templeton, Johanna McGlothlin, Knoxville, Tenn., for defendants.

Robert and Blanche Black, John C. Daniels, Larry R. Layman, Emerson and Sandra Owenby, Lois Elliott, David and Patti Payne, Ann M. Segars, C.W. and Helen Payne, Talmadge and Rowena Miller, Mr. & Mrs. Edward Charles, Harvey L. Sproul, Kathie Smith, Mary R. and David S. Gorghis, Dennis Stratikis, Charles W. Ridlen, Polly L. Rankin, Ernest E., Geraldine Douglas and Gregory L. Douglas, Pamela T. Hooper, Carol Ingrund, Mrs. John Bacon, Mr. & Mrs. George Archer, Cherl R. Avirom, James E. and Betty Jo Carter, William & Minnie Fendley, Jean Winstead, L. Lee Kull, Robert Clemens, Jr., Robert Clemens, Sr., E. and V. McKenzie, Chad Eric Sage, Minor, C.E. and Linda Sage, H.E. Dennison, Bonnie Bryant, Connie Williams, Donna R. Davis, H. Douglas Nichol, Robert and Nonnie Bennett, Gary Smiddy, Margaret Smiddy, Alice and Vernon Mays, Emma Davidson, Lois Elliot, Elizabeth Bristol, Patty Jane Lay, Hugh and Hazel Anderson, Keith and Brian Anderson, East Tennessee Bancorp, Inc., Wayne and Susan Bishop, Fred A. and Lois Williams, Gerald L. Evans, Nadine Evans, Dr. Travis E. Morgan, Harry Lillard, Rebecca Luck, pro se.


MEMORANDUM

GEORGE C. PAINE, II, Chief Judge.

The question presented is whether investors can shield withdrawals from Southern Industrial Banking Corporation ("SIBC") made 90 days before bankruptcy with the ordinary course of business exception in § 547(c)(2).

The following constitute findings of fact and conclusions of law. Bankr.R. 7052. This is a core proceeding. 28 U.S.C. § 157(b)(2)(F).

FACTS

SIBC, one of several interdependent...

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