In Re Van Ness Associates, Ltd.

MEMORANDUM DECISION

I. INTRODUCTION

Plaintiff Swiss Bank Corporation (“Swiss Bank”), as agent for Mitsubishi Bank Limited, Dresdner Bank AG, Caisse Nationale de Credit Agricole, and Instituto Bancario San Paolo di Torino (collectively, “Banks”) filed a complaint seeking a declaration that Banks’ lien on a 3/8 inch strip of real property (the “Strip”) currently owned by debtor Van Ness Associates (“VNA”) is valid and enforceable against and has priority over the interests and liens of each of the other defendants. On April 1, 1994, Banks filed a motion for summary judgment; VNA responded with a cross motion for summary judgment seeking a determination that any hen held by Banks is voidable pursuant to Bankruptcy Code Section 544(a)(3) (“Section 544(a)(3)”). Defendant Shawmut Bank, N.A. (“Shawmut Bank”) also filed an opposition to Banks’ motion. Following a hearing on the cross motions for summary judgment, the court requested counsel for Banks and VNA to submit supplemental authorities addressing additional issues.

The court has considered the evidence and the arguments of the parties, and, for the reasons set forth below, finds that (1) Banks have a valid lien on the Strip; (2)…