Russell v. Hilltop National Bank of Glenrock

IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF WYOMING
fure 	)
)
DANNY LEE MOONEY and 	)
PEARL MOONEY, 	)
)
Debtor. 	)
)
R. MICHELE RUSSELL, Trustee of the 	)
Bankruptcy Estate of Danny Lee 	)
Mooney and Pearl Mooney, 	)
)
Plaintiff, 	)
)
v. 	)
)
HILLTOP NATIONAL BANK, 	)
)
Defendant. 	)
Case No. 04-21290
CHAPTER 7
Adv. No. 04-2073
SUMMARY JUDGMENT
On June 9, 2005, the court held a hearing on the parties' cross motions for summary
judgment on the plaintiff trustee's complaint brought under 11 U.S.c. § 547. The parties
agree the facts are undisputed and summary judgment is appropriate as a matter of law.
The court has jurisdiction over this adversary proceeding pursuant to 28 U .S.C. §§ 157
& 1334(a). This is a core proceeding under § 157(b)(2)(F).
The trustee's complaint was brought under 11 U.S.C. § 547 to avoid the preferential
transfer of a security interest taken by the defendant, Hilltop National Bank of Glenrock
(Hilltop), in property of the debtors. The undisputed facts are:
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The debtors purchased a 2000 Champion mobile home, YIN 0500L 1005188, the
purchase of which was financed by Hilltop pursuant to a December 18, 2003 security
agreement. The debtors took possession of the mobile home on December 22 or 23,2003.
Hilltop sent the documents for recording of its lien on the title to the Converse County
Clerk on January 14, 2004. However, the debtors did not pay the sales tax due on the sale
until May 2004. 	Hilltop's lien was recorded on the title to the mobile home on May 12,
2004. 	The debtors filed their chapter 7 petition on July 2, 2004, within 90 days of the
recording of the lien on the title.
Discussion
The only issue presented by Hilltop in response to the trustee's complaint is when the
transfer occurred for purposes of § 547(b). 	Hilltop contends the "transfer" under § 547
occurred when the debtors executed the security agreement and granted Hilltop a security
interest in the mobile home. Hilltop's interpretation of the law is incorrect.
Under 11 U.S.C. § 547 (e)(2)(B), ifthe transfer is perfected after 10 days, the transfer
of a security interest in personal property occurs when the transfer is perfected. Perfection
occurs when a creditor on a simple contract cannot acquire a judicial lien that is superior to
the interests of the transferee. 	11 U.S.C. § 547(e)I)(B); In re Hesser, 984 F.2d 345,348
(10th Cir. 1993). That date, under Wyoming law, occurs when the notation of the security
interest is endorsed on the certificate of title. 	Wyo. Stat. Ann. § 31-2-801(a) (LexisNexis
2003). The trustee/plaintiff is entitled to judgment on the complaint.
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ACCORDINGLY, IT IS ORDERED:
1. The defendant's motion for summary judgment is denied;
2. 	The plaintiff's motion for summary judgment is granted and the transfer of the
defendant's security interest in the 2000 Champion mobile home is avoided; and
3. 	The defendant shall provided the trustee with a lien release and the title to the
mobile home.
Dated this -LL- day of July, 2005.
Service to:
Michele Russel
Kevin Huber
BY THE COURT
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