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MATTER OF RASH

No. 93-5396.

31 F.3d 325 (1994)

In the Matter of Elray RASH and Jean Rash, Debtors. ASSOCIATES COMMERCIAL CORPORATION, Appellant, v. Elray RASH and Jean Rash, Appellees.

United States Court of Appeals, Fifth Circuit.

September 13, 1994.

Attorney(s) appearing for the Case

Ben L. Aderholt, Tina Snelling, Hirsch, Robinson, Sheiness & Glover, Houston, TX, for appellant.

Rebecca A. Leigh, Houston, TX, for amicus curiae MBCC.

Dabney D. Bassel, Pamela A. Bassel, Law, Snakard & Gambill, P.C., Erin B. Shank, Nationsbank of Texas, N.A., Dallas, TX, for amicus curiae Nationsbank.

Robert E. Barron, Nederland, TX, John J. Durkay, Mehaffy & Weber, Beaumont, TX, for appellees.

Before REYNALDO G. GARZA, SMITH and PARKER, Circuit Judges.

JERRY E. SMITH, Circuit Judge:

The Associates Commercial Corporation ("ACC") appeals the district court's confirmation of a reorganization plan under chapter 13 of the Bankruptcy Code (the "code"). Because the district court erred as a matter of law in calculating the value of ACC's secured claim under 11 U.S.C. § 506(a), we reverse.

I.

A.

On March 30, 1989, Elray and Jean E. Rash1 purchased a commercial...

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