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In re Sand & Sage Farm & Ranch

266 B.R. 507 (2001)

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In re Sand & Sage Farm & Ranch

United States Bankruptcy Court for the District of Kansas
266 B.R. 507 (2001)

SH

Facts

Sand & Sage Farm & Ranch (Sand & Sage) (debtor) purchased real estate with an irrigation system on the land. In order to secure a loan to acquire the land, Sand & Sage granted a mortgage to Offerle National Bank (bank) that covered both the real estate as well as improvements and fixtures thereon. Sand & Sage thereafter executed a security agreement that granted Ag Services of America (Ag Services) (creditor) a security interest in its equipment and other farm-related assets. When Sand & Sage initiated proceedings under Chapter 12 of the United States Bankruptcy Code, it filed a motion for authority to sell property free and clear of liens to sell its real estate. Ag Services objected to the proposed sale, asserting a first and prior lien over the bank in the irrigation system, pumps, and grain bins.

Rule of Law

Issue

Holding and Reasoning (Nugent, J.)

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