U.S. Bank v. Super. Ct. CA4/3

INTRODUCTION

Bella Terra Office JV, LLC (Bella Terra), obtained a loan to acquire three office buildings and two retail buildings in a retail center in Huntington Beach (the Property). Bella Terra executed a deed of trust in favor of the lender, granting it a security interest in certain real and personal property. U.S. Bank, N.A., as Trustee for the Registered Holders of ML-CFC Commercial Mortgage Trust 2007-7, Commercial Mortgage Pass-Through Certificates Series 2007-7, acting by and through Midland Loan Services, a division of PNC Bank, N.A., its Special Servicer (U.S. Bank), is the successor to the lender who made the loan to Bella Terra to acquire the Property. After Bella Terra defaulted on the loan, a receiver was appointed to oversee the Property. After the U.S. Bank loan funded, but before Bella Terra defaulted on the loan, Bella Terra made a separate loan to the owner of a parking structure adjacent to the Property to pay for improvements to that structure. U.S. Bank claims a security interest in the promissory note for the loan from Bella Terra. In this proceeding, U.S. Bank requested the trial court to order Bella Terra to turn over to the receiver the promissory note…