In re Premier Golf Properties, LP
United States Bankruptcy Appellate Panel for the Ninth Circuit
477 B.R. 767 (2012)
Premier Golf Properties, L.P. (Premier) borrowed from Far East National Bank (the bank) to operate a golf course, granting a security interest in all its personal and real property, including general intangibles and their proceeds. After Premier filed for chapter 11 bankruptcy and opened a cash-collateral account without segregating greens-fee and driving-range-fee revenue, the bank moved to prevent Premier from using that cash collateral, arguing the fees were either rent from the real property or proceeds of the bank's intangible-property security interest. The bankruptcy court denied the motion, and the bank appealed.
Whether a creditor is entitled to revenue obtained after the debtor's bankruptcy petition, except for proceeds, profits, and rents from the creditor's collateral and rents for income produced from the real property.