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IN RE MERTEN

Bankruptcy No. 93-06991-H11.

164 B.R. 641 (1994)

In re John V. MERTEN and Anita B. Merten, Debtors.

United States Bankruptcy Court, S.D. California.

March 2, 1994.

Attorney(s) appearing for the Case

Alan D. Bersin, U.S. Atty., James J. Posedel, Sp. Asst. U.S. Atty., San Diego, CA, for IRS.

Dennis J. Wickham, Seltzer Caplan Wilkins & McMahon, San Diego, CA, for OCC.

Margaret M. Mann, Luce, Forward, Hamilton & Scripps, San Diego, CA, for Farm Credit Services.

John W. Cutchin, Duckor & Spradling, San Diego, CA, for ERA Jackson McCombs Realty.

John L. Smaha, John Smaha & Associates, San Diego, CA, for debtors.

MEMORANDUM DECISION

JOHN J. HARGROVE, Bankruptcy Judge.

At issue is whether Imperial-Yuma Production Association's ("PCA") perfected security interest in the debtors' option contract rights to purchase real property attaches to proceeds generated from the debtors' postpetition exercise of its option contract rights and subsequent sale of the real property.

This court has jurisdiction to hear this matter pursuant to 28 U.S.C. § 1334 and §...

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