In Re SF Drake Hotel Associates
S.F. Drake Hotel Associates v. Security Pacific National Bank (In Re S.F. Drake Hotel Associates)
Opinion
Opinion
Caulfield, J.
ORDER
BACKGROUND
Appellant San Francisco Drake Hotel Associates, a California Limited Partnership (“S.F. Drake”), is a debtor and debtor in possession in a Chapter 11 case commenced on February 25, 1991, and pending in the United States Bankruptcy Court for the Northern District of California. The principal asset of S.F. Drake and of the Chapter 11 estate is the Sir Francis Drake Hotel located in San Francisco, California (the “Hotel”). The Hotel is encumbered by a Deed of Trust and Assignment of Rents and Fixture Filing in favor of appellee and cross appellant Security Pacific National Bank (“SPNB”) dated September 26, 1986. On August 1, 1991, the bankruptcy court ruled that the post-petition revenues of the Hotel are subject to the pre-petition liens of SPNB pursuant to 11 U.S.C. § 552 (d) and thus constitute SPNB’s cash collateral. S.F. Drake appeals the court’s ruling that the Hotel’s revenues are subject to SPNB’s pre-petition liens. SPNB cross-appeals challenging the bankruptcy court’s finding that such revenues were not absolutely assigned to the Bank. Upon consideration of the briefs of the parties, the bankruptcy court’s Order is AFFIRMED.