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MATTER OF BAILEY

No. 92-1769.

999 F.2d 237 (1993)

In the Matter of James D. BAILEY, Georganna Bailey, Debtors. Appeal of STATE BANK OF ARTHUR.

United States Court of Appeals, Seventh Circuit.

Decided July 14, 1993.

Attorney(s) appearing for the Case

John E. Fick (argued), Rhonda L. Richards, Samuels, Miller, Schroeder, Jackson & Sly, Decatur, IL, for State Bank of Arthur.

A. James Shafter (argued), Mark D. Gibson, Kehart, Shafter, Hughes & Webber, Decatur, IL, for First of America Bank-Decatur, N.A.

Before MANION and ROVNER, Circuit Judges, and REYNOLDS, Senior District Judge.

ILANA DIAMOND ROVNER, Circuit Judge.

The State Bank of Arthur ("Arthur") appeals from the bankruptcy court's determination that Citizens National Bank of Decatur ("CNB")1 was entitled to first priority to the proceeds from a sale of real property. The bankruptcy court found that CNB holds a valid mortgage on the property that gives it priority over Arthur's unsecured claim. The district court agreed. However, Arthur asserts priority on...

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