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SOVEREIGN BANK v. SCHWAB

No. 03-4625.

414 F.3d 450 (2005)

SOVEREIGN BANK, successor by merger with Main Street Bank to Heritage National Bank and the Schuylkill Haven Trust Co., Appellant v. William G. SCHWAB, Trustee for Keith S. Kirby and Kathy A. Kirby.

United States Court of Appeals, Third Circuit.

Filed July 6, 2005.

Attorney(s) appearing for the Case

Douglas M. Marinos (Argued), Douglas M. Marinos & Associates, P.C., Allentown, PA, for Appellant.

William G. Schwab, Michelle Wolfe, Jason Zac Christman (Argued), William G. Schwab and Associates, Lehighton, PA, for Appellee.

Before ROTH and CHERTOFF, Circuit Judges, and RESTANI, Chief Judge, United States Court of International Trade.

RESTANI, Judge.

Sovereign Bank ("the bank") appeals the district court's final order that affirmed the decision of the bankruptcy court ordering the bank to turn over rents to the bankruptcy estate. Because we conclude that the rents were not the property of the bankruptcy estate, we reverse.

I. Factual and Procedural History

The bank held mortgages on three rental properties in Pennsylvania. The mortgages contained assignment of rents provisions...

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