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IN RE WORCESTER QUALITY FOODS, INC.

Bankruptcy No. 90-42013-JFQ, Adv. No. 91-4121.

140 B.R. 21 (1992)

In re WORCESTER QUALITY FOODS, INC., Debtor. David M. NICKLESS, Trustee, Plaintiff, v. EQUIPMENTLEASE CORPORATION, Marine Midland Business Loans, Inc., Erle Martin, Defendants.

United States Bankruptcy Court, D. Massachusetts.

May 7, 1992.

Attorney(s) appearing for the Case

David Nickless, Nickless and Phillips, Fitchburg, Mass., trustee.

Carl Aframe, Worcester, Mass., for Equipmentlease Corp., defendant.

Mary Anne B. Tillona, Murtha, Cullina, Richter and Pinney, Hartford, Conn., for Erle Martin, III, defendant.

Stephanie Kahn, Hoberman & Pollack, P.C., Boston, Mass., for Marine Midland Business Loans, Inc.

OPINION

JAMES F. QUEENAN, Jr., Chief Judge.

Cross motions for summary judgment present a three-cornered dispute over the remaining proceeds from the sale of an airplane. At the heart of the controversy is the perennial issue of whether a transaction constitutes a lease or a security agreement, but with a new twist. The question is relevant not with respect to the necessity of a filing by the named lessor but rather with respect to its substantive rights...

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