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IN RE PREMIER AIRWAYS, INC.

Bankruptcy No. 01-10656. Adversary No. 02-1238.

303 B.R. 295 (2003)

In re PREMIER AIRWAYS, INC., Debtor. Thomas J. Gaffney, as Trustee, Plaintiff, v. United States Department of Transportation, Federal Aviation Administration, Defendants.

United States District Court, W.D. New York.

December 31, 2003.

Attorney(s) appearing for the Case

Thomas J. Gaffney, Esq., Buffalo, NY, for Trustee/Plaintiff.

Michael A. Battle, United States Attorney, Western District of New York, By Jane B. Wolfe, Esq., Assistant U.S. Attorney, Buffalo, NY, for Defendant.

CARL L. BUCKI, Bankruptcy Judge.

Real property is indeed different from personalty, and the Bankruptcy Code incorporates distinctions that honor this difference. One such distinction occurs in 11 U.S.C. § 544(a)(3), which grants to a trustee certain rights of a bona fide purchaser of real property. This power is key to a resolution of the present dispute, which involves the claim of the Federal Aviation Administration ("FAA") to an equitable lien on land that...

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