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MATTER OF HERNÁNDEZ ARVELO

Bankruptcy No. 85-00578(SEK), Adv No. 85-0318.

125 B.R. 693 (1991)

In the Matter of Ramón HERNÁNDEZ ARVELO & Maria v. Medina, Debtor-Intervenors. Hans Lopez STUBBE, Trustee for the Estate of Debtors, Plaintiff, v. Ernesto RIVERA ROURA, Irma Martinez Toro, their Conjugal Partnership; U.S.A. (Farmers Home Administration), Defendants.

United States Bankruptcy Court, D. Puerto Rico.

April 15, 1991.

Attorney(s) appearing for the Case

Alberto Lozada-Colón, Mayaguez, P.R., for defendant Rivera-Roura.

Sergio Ramírez de Arellano, Hato Rey, P.R., for Trustee.

José Pizarro, Asst. U.S. Atty., Hato Rey, P.R., for codefendant Farmers Home.

OPINION AND ORDER

SARA E. de JESUS, Bankruptcy Judge.

The question in this proceeding is whether the Trustee can avoid Debtor's prebankruptcy sale of his milk quota to Mr. Ernesto Rivera Roura pursuant to the "strong arm" clause of the U.S. Bankruptcy Code, 11 U.S.C. Section 544(a), because under applicable state law delivery was insufficient to pass title.

The production and sale of milk in Puerto Rico has been regulated since 1979, by Law No. 34...

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