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IN RE HEN HOUSE INTERSTATE, INC.

No. 97-3859.

177 F.3d 719 (1999)

In re HEN HOUSE INTERSTATE, INC., Debtor. Hartford Underwriters Insurance Company, Movant-Appellee, v. Magna Bank, N.A., formerly known as Magna Bank of Illinois, N.A., Respondent-Appellant.

United States Court of Appeals, Eighth Circuit.

Filed June 7, 1999.

Attorney(s) appearing for the Case

Robert Hammel Brownlee, St. Louis, Missouri, argued (David D. Farrell, on the brief), for Respondent-Appellant.

G. Eric Brunstad, Jr., Hartford, Connecticut, argued (Wendi Alper-Pressman, on the brief), for Movant-Appellee.

Before: BOWMAN, Chief Judge, HEANEY, McMILLIAN, RICHARD S. ARNOLD, FAGG, WOLLMAN, BEAM, LOKEN, HANSEN, MORRIS SHEPPARD ARNOLD, and MURPHY, Circuit Judges, en banc.

BOWMAN, Chief Judge.

Magna Bank, N.A., appeals the judgment of the District Court affirming the judgment of the Bankruptcy Court in favor of Hartford Underwriters Insurance Company. The sole question presented for review by the Court en banc is the threshold question of whether Hartford has statutory standing to surcharge Magna's collateral under 11 U.S.C. § 506(c) (1994). We reverse.

I.

Magna2 made various loans...

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