In re: Carol Lee Depuydt-Meier, NC-21-1001-SFB NC-21-1002-SFB

2006: Meier executed a $600,000 adjustable-rate note to Downey and a deed of trust was recorded; she defaulted circa 2010.
2008: FDIC became receiver for Downey and transferred the loan portfolio to U.S. Bank; later U.S. Bank assigned the deed of trust to Truman 2016 SC6 Title Trust (Truman Trustee).
Truman Trustee filed a secured proof of claim in Meier’s 2020 Chapter 13, attaching copies of the original note plus two allonges: one endorsing to U.S. Bank and a second endorsing in blank.
Meier objected to the claim and opposed relief from stay, arguing defects in origination, transfer, inconsistent loan-document versions, and that the allonges were not properly affixed or authentic.
Truman Trustee submitted declarations from a Rushmore custodian (Dawson) stating possession of the original endorsed note and allonges and produced matching loan-document copies; bankruptcy court credited that evidence.
Bankruptcy court overruled Meier’s claim objection and granted relief from stay; the BAP affirmed both orders, holding Truman Trustee had PETE status and a colorable claim to foreclose.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Standing to file proof of claim (PETE)	Meier: allonges not properly affixed; inconsistent document versions; securitization/ownership defects mean Truman lacks right to enforce the note.	Truman: produced Rule 3001-compliant proof of claim and a custodian declaration showing possession of original note with two allonges (one blank endorsement), establishing holder/PETE status.	Truman met burden; court credited documentary and custodian evidence; Truman is a person entitled to enforce the note (PETE); claim objection overruled.
Standing to seek relief from stay	Meier: same challenges to authenticity/affixation and ownership undermine trustee’s right to foreclose.	Truman: even absent perfect chain-of-title, demonstrated a colorable claim to enforce deed of trust and possession/indorsement of note; recording and assignments support nonjudicial foreclosure under California law.	More liberal stay standard satisfied; Truman established colorable right to enforce deed of trust and standing to seek relief from stay; stay relief granted and affirmed.

In re Veal, 450 B.R. 897 (9th Cir. BAP 2011) (establishes PETE standing analysis and distinction between standing to file claim and to seek stay relief)
Lane v. Bank of N.Y. Mellon, 959 F.3d 1226 (9th Cir. 2020) (possessor of note endorsed in blank is entitled to enforce)
Yvanova v. New Century Mortg. Corp., 62 Cal. 4th 919 (Cal. 2016) (transfer of note carries security; relates note enforcement to deed of trust rights)
In re Jimenez, 613 B.R. 537 (9th Cir. BAP 2020) (beneficiary or successor may initiate nonjudicial foreclosure under California law without producing the note)
Debrunner v. Deutsche Bank Nat'l Tr. Co., 204 Cal. App. 4th 433 (Cal. Ct. App. 2012) (discusses beneficiary’s foreclosure rights and note possession relevance)
Carpenter v. Longan, 83 U.S. 271 (U.S. 1872) (transfer of the note carries the security incident to it)