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IN RE CASA BLANCA PROJECT LENDERS, L.P.

BAP No. CC-95-1345-VHM. Bankruptcy No. ND 93-12987-RR.

196 B.R. 140 (1996)

In re CASA BLANCA PROJECT LENDERS, L.P., Debtor. CASA BLANCA PROJECT LENDERS, L.P., Appellant, v. CITY COMMERCE BANK, and Community Bank, Appellees.

United States Bankruptcy Appellate Panel of the Ninth Circuit.

Decided April 30, 1996.

Attorney(s) appearing for the Case

Martin P. Cohn, Santa Barbara, CA, for Appellant.

William C. Beall, Santa Barbara, CA, for Appellees.

Before: VOLINN, HAGAN, and McKEAG, Bankruptcy Judges.

OPINION

VOLINN, Bankruptcy Judge:

OVERVIEW

The Chapter 11 debtor appeals an order granting an over-secured creditor default interest where the creditor received full payment of its principal, interest at the pre-default rate, costs and attorneys' fees. The trial court awarded the creditor the higher interest rate because the collateral was sold pursuant to § 363 of the Bankruptcy Code rather than in the context of a plan of reorganization...

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