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IN RE COLBERT

Bankruptcy Nos. 5-91-00133, 5-91-00154.

128 B.R. 734 (1991)

In re James & Nancy COLBERT, Debtors. FIRST AMERICAN BANK OF VIRGINIA, Movant, v. John G. LEAKE, Trustee, et als., Respondents. In re Allen & Alfreda HAZARD, Debtors. FIRST AMERICAN BANK OF VIRGINIA, Movant, v. John G. LEAKE, Trustee, et als., Respondents.

United States Bankruptcy Court, W.D. Virginia, Harrisonburg Division.

June 24, 1991.

Attorney(s) appearing for the Case

Dale A. Davenport, Harrisonburg, Va., for Colberts.

Bruce Downing, Winchester, Va., for Hazards.

Brian F. Kenney, Fairfax, Va., for Bank.

William E. Shmidheiser, III, Harrisonburg, Va., for Realty Co.

MEMORANDUM OPINION

ROSS W. KRUMM, Bankruptcy Judge.

The matter for decision before the court is whether the failure to timely perfect a security interest in collateral is an unjustifiable impairment of collateral within Code of Virginia § 8.3-606, such that the objection to the motions for relief should be sustained.

Background

Dovetailed Enterprises, Inc. (hereinafter Dovetailed) is an entity in which James and Nancy Colbert...

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