Can a debtor in possession avoid prepetition security interests that have not been properly perfected?
federal, United States of America
The following excerpt is from Grogan v. Harvest Capital Co. (In re Grogan), Adv. No. 11-06276-TMR, BAP No. OR-12-1483-JuTaPa, Bk. No. 11-65409-TMR (B.A.P. 9th Cir. 2013):
7. Generally, under 544(a), a debtor in possession can avoid prepetition security interests that have not been properly perfected. See NetBank, FSB v. Kipperman (In re Commercial Money Ctr., Inc.), 350 B.R. 465, 474 (9th Cir. BAP 2006).
8. Exhibit A to Note B provides in relevant part:
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