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IN RE TAKES

No. 06-1373.

478 F.3d 902 (2007)

In re Francis P. TAKES; Mary L. Takes, Debtors. LaSalle Bank, N.A.; Valley Bank, Appellees, v. Francis P. Takes; Mary L. Takes, Appellants.

United States Court of Appeals, Eighth Circuit.

Filed: January 10, 2007.

Attorney(s) appearing for the Case

Janet K. Hong, Cedar Rapids, IA, for appellant.

Richard A. Davidson, Davenport, IA, for appellee.

Before LOKEN Chief Judge, SMITH and GRUENDER, Circuit Judges.

LOKEN, Chief Judge.

In this Chapter 7 bankruptcy proceeding, debtors Frank and Mary Lu Takes claimed a homestead exemption in Unit No. 4 of the Garnett Place Townhomes in Cedar Rapids, Iowa, where they have lived since 1994 and which they purchased in 2004. Creditors LaSalle Bank and Valley Bank objected to the exemption, arguing that under Iowa law—which governs this issue by reason of 11 U.S.C. § 522(b) and Iowa Code § 627. 10—debtors' homestead...

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