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IN RE BONNEMA

Bankruptcy No. 697-60111-7, Adversary No. 697-6014.

219 B.R. 951 (1998)

In re Johannes Hoekstra BONNEMA Kasey Larue Bonnema, Debtors, Harvey L. MORTON, Trustee, Plaintiff, v. SANTA ANNA NATIONAL BANK, Defendant.

United States Bankruptcy Court, N.D. Texas, San Angelo Division.

May 8, 1998.

Attorney(s) appearing for the Case

Scott A. Morelock, Brownwood, TX, for Santa Anna National Bank.

Ronald Mapel, San Angelo, TX, for Debtors.

Harvey L. Morton, Lubbock, TX, Chapter 7 Trustee.

MEMORANDUM OF OPINION ON CAPITAL RETAINS

JOHN C. AKARD, Bankruptcy Judge.

The issue before the court is whether Associated Milk Producers, Inc. effectively prohibited the assignment of "capital retains" to Santa Anna National Bank, which wanted to use them as collateral to secure a pre-petition loan it made to the Debtors. The court finds that Associated Milk Producers, Inc. prohibited their assignment, and Santa Anna National Bank has no rights in the capital...

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