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FIRST FEDERAL SAV. v. CITY NAT. BANK

Civ. No. 88-2062.

87 B.R. 565 (1988)

FIRST FEDERAL SAVINGS OF ARKANSAS, F.A., Appellant, v. CITY NATIONAL BANK OF FORT SMITH, ARKANSAS, et al., Appellees.

United States District Court, W.D. Arkansas, Fort Smith Division.

July 12, 1988.

Attorney(s) appearing for the Case

James Paul Beachboard, Little Rock, Ark., for appellant.

Dennis Sbanotto, Fort Smith, Ark., for Jewel R. Morris, Robert Gentry, and Odessa Gentry.

Neal Kirkpatrick, Fort Smith, Ark., for unsecured creditors' committee.

Robert Y. Cohen, II, Fort Smith, Ark., for City Nat'l Bank of Ft. Smith.

Jan K. Nielsen, Fort Smith, Ark., for First Nat'l Bank of Ft. Smith.

Morril H. Harriman, Van Buren, Ark., for Citizens Bank & Trust Co.

Ben T. Barry, Fort Smith, Ark., for First Nat'l Bank of Roland.

MEMORANDUM OPINION

MORRIS SHEPPARD ARNOLD, District Judge.

This bankruptcy appeal presents, at bottom, a single legal issue for determination, namely, whether debtors' lender acquired an interest in debtors' rents by virtue of instruments executed in connection with a loan of $10,000,000.00. The bankruptcy court held that the lender did not acquire such an interest. For the reasons adumbrated below, this court is of the view that the lender acquired at the...

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