In re Essex

Appellant, Essex Properties, Ltd., debtor in the instant proceeding under Chapter XII of the Bankruptcy Act, 11 U.S.C. §§ 801 , et seq., appeals from an order entered July 28, 1976, by Bankruptcy Judge Cameron W. Wolfe striking appellant’s affirmative defenses and dismissing appellant’s counterclaims to a complaint brought by appellee, R. A. Krause, a secured creditor of appellant, for termination of the automatic stays of Section 428 of the Bankruptcy Act and Bankruptcy Rule 12-43. For the reasons stated below, the Court affirms the order of Bankruptcy Judge Wolfe and dismisses the appeal.

I.

At the time of the bankruptcy proceeding below, the appellee held a mortgage as security for payment of a note on real property located in Florida and owned by appellant. The appellee filed an action in Florida state court to foreclose the mortgage. The appellant answered the complaint raising usury as an affirmative defense. Appellant later filed for bankruptcy under Chapter XII of the Bankruptcy Act in the Northern District of California and secured an automatic stay of the foreclosure proceedings under Bankruptcy Rule 12-43(a). Pursuant to Bankruptcy Rule 12-43(d), appellee…