Salmon Falls Resort, LLC

09-00301 | Bankr. D. Alaska | Nov 10, 2009

Case 09-00301 Doc 117 Filed 11/10/09 Entered 11/10/09 16:30:35 Desc Main

Document Page 1 of 2 UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF ALASKA In re: Case No. K09-00301-DMD Chapter 11 SALMON FALLS RESORT, LLC, Filed On 11/10/09

Debtor. MEMORANDUM RE RECONSIDERATION The sales documents executed by the parties in this case were inartfully drafted. The original buy-sell agreement included a provision granting a security interest in certain personal property listed on “Exhibit A.” [1] Exhibit A to this agreement consists of four pages, although a footer at the bottom of this exhibit indicates that it may have, at one point, consisted of seven pages. Three pages were missing. This error was not corrected in the parties’ subsequent amendment to the buy-sell agreement. [2] The amendment contained two lists of personal property, but neither list matches Exhibit A. Nor did the amendment specify that Salmon Falls, Inc., would retain a security interest in the items listed on those two lists. An enforceable security interest arises only with respect to property described as collateral in a security agreement. [3] The only personal property satisfying this requirement is the property listed on Exhibit A to the original buy-sell agreement.

The order and judgment which were entered on October 22, 2009, granted relief from stay as to some personal property not listed on Exhibit A and, thus, not covered Case 09-00301 Doc 117 Filed 11/10/09 Entered 11/10/09 16:30:35 Desc Main Document Page 2 of 2 by the security agreement. Salmon Falls, Inc., does not have a colorable security interest in this personal property. Therefore, I will grant the debtor’s motion for reconsideration and enter an amended order and judgment which limits relief from stay, insofar as personal property is concerned, just to the items listed on the four-page Exhibit A which was attached to the original buy-sell agreement.

DATED: November 10, 2009.

BY THE COURT

/s/ Donald MacDonald IV DONALD MacDONALD IV United States Bankruptcy Judge

Serve: D. Bruce, Esq. F. Odsen, Esq. J. Gorski, Esq. M. Marx, Esq. K. Hill, Esq. 11/10/09 2

NOTES

[1] Debtor’s Ex. 2.

[2] Debtor’s Ex. 3.

[3] AS 45.29.203(b)(3)(A).