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MATTER OF MOUNT CALVARY BAPTIST CHURCH

Nos. 94-3521, 94-3574.

70 F.3d 51 (1995)

In the Matter of MOUNT CALVARY BAPTIST CHURCH also known as Mount Calvary Baptist Church & School, Debtor. CHURCH MUTUAL INSURANCE COMPANY, Plaintiff-Appellee, v. MOUNT CALVARY BAPTIST CHURCH also known as Mount Calvary Baptist Church & School and Seaway National Bank, Defendants-Appellants.

United States Court of Appeals, Seventh Circuit.

Decided November 13, 1995.

Rehearing and Suggestion for Rehearing Denied January 2, 1996.

Attorney(s) appearing for the Case

Scott W. Hoyne, Johnson & Bell, Chicago, IL, Alan G. Gregory (argued), Troy, MI, for Church Mutual Insurance Company.

Sharon Goss, Arlene Y. Coleman-Romeo (argued), Witwer, Poltrock & Giampietro, Chicago, IL, Denise Brewer (argued), Brewer & Associates, Chicago, IL, for Mount Calvary Baptist Church.

Alan W. Brothers, Robin D. Shoffner, Carney & Brothers, Chicago, IL, for Seaway National Bank.

Before BAUER, COFFEY, and EVANS, Circuit Judges.

Rehearing and Suggestion for Rehearing En Banc Denied January 2, 1996.

EVANS, Circuit Judge.

This case boils down to one question: Should the Church Mutual Insurance Company be allowed to cash a check intended to cover premiums due on three specifically identified insurance policies and apply the proceeds not to the policies but to other debts of the insured? The bankruptcy court said no; the district court, on review...

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