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IN RE CROOK

Nos. 91-6204, 91-6206 and 91-6207.

966 F.2d 539 (1992)

In re Randy L. CROOK and John Wedman, Debtors. STATE OF OKLAHOMA, EX REL. COMMISSIONERS OF THE LAND OFFICE, Appellant, v. Randy L. CROOK and John Wedman, Appellees, and United States of America, Defendant-Intervenor-Appellee.

United States Court of Appeals, Tenth Circuit.

May 12, 1992.

Attorney(s) appearing for the Case

Perry E. Kaufman, Asst. Gen. Counsel, State of Okl., Oklahoma City, Okl. (Dennis W. Arrow, Oklahoma City University School of Law, Oklahoma City, Okl., with him on the brief), for appellant.

Bruce G. Forrest, U.S. Dept. of Justice, Washington, D.C. (Stuart M. Gerson, Asst. Atty. Gen., Washington, D.C., Timothy D. Leonard, U.S. Atty., Oklahoma City, Okl., William Kanter, U.S. Dept. of Justice, Washington, D.C., with him on the brief), for defendant-intervenor-appellee.

John J. Jerome, Milbank, Tweed, Hadley & McCloy, Richard Lieb, Kronish, Lieb, Weiner & Hellman, New York City, filed an amicus curiae brief for the Ass'n of the Bar of the City of New York, The Committee on Bankruptcy and Corporate Reorganization.

Before ANDERSON, ALDISERT and BRORBY, Circuit Judges.

ALDISERT, Senior Circuit Judge.

This appeal by the state of Oklahoma requires us to decide if the bankruptcy court's action in "writing down" a mortgage held by the state of Oklahoma violates the state's sovereign immunity under the Tenth and Eleventh Amendments. Oklahoma holds mortgages on property owned by two debtors in bankruptcy.

In reorganization proceedings, the bankruptcy code permits the court to "write down" certain debts, that is, to declare the...

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