The bankruptcy court denied Far East National Bank's motion to prohibit a debtor from using cash collateral. The bank had a security interest in all of the Golf Club's property and all proceeds thereof, but the court determined that the revenue from the debtor's post-petition green fees and driving range fees did not constitute the bank's cash collateral. The bank argued that revenue from green fees and driving range fees is a primary component of the value of the land, but courts have held that it was not considered rent. However, the bank has a perfected security interest in the golf club's general intangible property, including licenses and receipts.
Far East National Bank v. United States Trustee (In re Premier Golf Properties, LP) (2012)
United States Bankruptcy Appellate Panel for the Ninth Circuit
477 B.R. 767
Learn more about this case at https://www.lsd.law/briefs/view/far-east-national-bank-v-united-states-trustee-in-re-premier-golf-properties-lp-101020605
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