## United States Bankrup tcy Appellate P anel FOR THE EI GHT H CIRCUI T

__ __ __ __ __ __ __ _ No. 1 1- 60 62

__ __ __ __ __ __ __ __ In re: *

* Neg us -So ns , Inc ., *

* Deb to r *

* Ri ck D. Lang e, Ch ap te r 7 Tru st ee, *

* App eal fro m

th e Uni te d S ta te s Pl ai nt iff – Ap pe ll ee, * Ban kr up tc y Co ur t fo r th e
* Dis tri ct of Ne br as ka

v. *

* Mu tu al of Om ah a Ban k, *

* Defen da nt – Ap pe ll an t, *

* Uni te d S ta te s Tre as ur y , Int ern al * Rev en ue Serv ic e; Co nt ract or s, * Lab or ers , Team st ers an d En gi ne ers * Pen si on Pla n; Co nt ract or s, Lab or ers , * Team st ers an d En gi ne ers Heal th an d * W el fare Pla n; Int ern at io na l Un io n o f * Ope rat in g En gi ne ers , Loca l No . 57 1 *

* Defen da nt s – App el le es *

__ __ _ Su bm it te d: Nov em

be r 30 , 20 11 Fi le d: Decem

be r 22 , 20 11

__ __ _ Be fo re K RE SS E L , Ch ie f Ju dg e, SCHERM ER, AND VENTERS , Ba nkr upt cy Judg es

.

__ __ _ VENTERS, Bank ru pt cy

Ju dg e.Defen da nt Mu tu al of Om ah a Ban k ap pe al s th e or de r of th e ba nk ru pt cy co ur t 1

gr an ti ng a m ot io n fo r su m m ary jud gm en t f

i l ed by Pl ai nt iff Ri ck D. Lan ge , th e Ch ap te r 7 tru st ee (“ Trus te e”) of th e Deb to r’s ba nk ru pt cy es ta te

. The Trus te e so ug ht ,
an d t he ba nk ru pt cy

co ur t en te red , an o rd er d et erm in in g t ha t M ut ua l o f Om ah a d oe s

no t ha ve a se cu rit y in te res t in cert ai n of th e Deb to r’s pe rs on al pr op ert y (“ Pro pe rty”). Defen da nt –Ap pe ll ee Uni te d St at es an d Defen da nt –A p p el le es th e Co nt ract or s, Lab or ers , Team st ers an d Eng in eers Pen si on P l a n ; th e Co nt ract or s, Lab or ers , Team st ers an d Eng in eers Heal th an d W el fare Pl an ; an d th e I n t e r n a t io na l Uni on of Ope rat in g Eng in eers , Loc al No. 57 1 (co ll ect iv el y , th e “ Uni on Pl an s” ) fil ed br ie fs in

su pp or t o f th e Tru st ee’s p os it io n. 2

Fo r th e reas on s s ta te d b el ow, we af fir m th e d eci si on of t he ba nk ru pt cy co ur t.

STANDARD OF REVIEW Fi nd in gs of fact are rev ie wed fo r c l e ar erro r, an d le ga l co nc lu si on s are

rev ie wed de no vo

. The ba nk ru pt cy co ur t's gr an t of su m m ary jud gm en t is rev ie wed 3 de no vo

. 4

The Ho no rab le Tim ot hy J. Mah on ey , Uni te d S ta te s B an kr up tc y Ju dg e fo r 1 th e Dis tri ct of Ne br as ka

. As i nd ic at ed in th e cap ti on , Mu tu al of Om ah a was on e o f se ve ral 2 de fen da nt s n am ed in th e Tru st ee’s co m pl ai nt to de te rm in e th e ex is te nc e, va li di ty,

an d e xt en t o f li en s cl ai m ed in th e Deb to r’s pe rs on al pro pe rty. A tri al was s et on is su es rem ai ni ng aft er t he en try of s um m ary jud gm en t o n M ut ua l o f Om ah a’s in te res ts , bu t a s ti pu la ti on am on g t he Trus te e, th e IRS , and Uni on Pla ns ne ga te d th e n eed for

a tr ia l. On Aug us t 1 8, 2 01 1, a ju dg m en t was en te red on th e en ti re ad ve rs ary pr oc eed in g.
Se e In re Wat er man , 24 8 B .R. 56 7, 5 70 (B.A.P. 8t h C ir. 2 00 0)

. 3

Se e U.S. v. Ho rr as , 44 3 B .R. 15 9, 1 61 –6 2 (B .A.P. 8t h C ir. 2 01 1) (ci ti ng 4 Ta yl or v. St . Lou is Co un ty Bd. o f El ect io n C

ommi ss io ne rs , 62 5 F .3d 10 25 , 10 28 (8 th Cir . 20 10 )).

2BACKGRO UND

Deb to r Neg us -So ns , In c., was a Neb ras ka co m pa ny pr im ari ly en ga ge d in eart h

m ov in g fo r co m

m erci al co ns tru ct io n pr ojec ts

. M u t u a l o f Om ah a Ban k is th e

su cces so r in in te res t t o Neb ras ka Sta te Ban k o f Om ah a (“ NSB”)

.

On Decem

be r 30 , 20 03 , th e de bt or ex e c u t e d a bu si ne ss lo an ag reem en t an d
pr om is so ry no te wit h NSB fo r Loa n 21 04 0- 03 ( “Lo a n N o. 3” ) in th e am ou nt of $1 ,46 9,0 77 .63

. The m at ur it y da te was Ju ne 30 , 20 08 , an d th e lo an was se cu red by a de ed of t ru st an d g ua ran ty, bo th da te d Dec em be r 30 , 20 03

. 5

On M ay 15 , 20 06 , th e de bt or ex ecu te d a pro m is so ry no te wit h NSB for Loan 21 04 00 7 (“ Loa n No. 7” ) in th e am ou nt of $1 ,03 0,2 17 .00

. The m at ur it y da te was Ju ne 10 , 2 00 8, an d th e lo an was s ecu red by a co m m erci al se cu rit y ag reem en t da te d May 15 , 20 06 , a de ed of tru st da te d May 15 , 20 06 , an d a g u a r a n t y da te d Apr il 4, 20 05

. The se cu rit y ag reem en t co ve red es se nt ia ll y al l of th e Deb to r’s as se ts

. To pe rfec t it s in te res t in th e Deb to r’s pe rs on al pr op ert y , NSB fil ed two UCC fin an ci ng st at em en ts wit h th e Neb ras ka Secr et ary of St at e: Fi na nc ing St at em en t 9803 1655 25- 1 (“ Fi nanc in g St at em en t 1” ) da te d Ju ne 3, 20 03 , ev id en ces th e bl an ke t li en on th e Deb to r’s as se ts ;

an d Fi na nc in g St at em en t 99 03 28 75 03 -4 (“ Fi na nc in g St at em en t 4” ), on Ju ly 28 , 20 03 ,
am en ds Fi na nc in g St at em en t 1 wit h reg ard to ce r t a i n pr op ert y pu rs ua nt to a

su bo rd in at io n a gr eem en t wi th Nebr as ka Mac hi ne ry Co m pa ny.

In Sep te m

be r 20 07 th e Deb to r an d W el l s F a rg o Equ ip m en t Fi na nc e, In c.,

en te red in to a fin an ci ng arra ng em en t fo r a rev ol vi ng lo an se cu red by cert ai n

At o ral arg um en t, co un se l fo r Mu tu al of Om ah a al lu de d t o t he ex is te nc e o f 5

a se cu rit y ag reem en t s ecu rin g Lo an No. 3 bu t co ul d n ot di rect th e Co ur t t o i t i n t he

reco rd . Upo n c aref

ul rev ie w of t he reco rd , in cl ud in g t he do cu m en ts fil ed in

su pp or t o f Mu tu al of Om ah a’s Mo ti on for Su m m ary Ju dg m en t, we were un ab le to fin d a sec ur it y

ag reem en t s ecu rin g Lo an No. 3 an d wi ll , for pu rp os es of t hi s ap pe al , ass um e th at on e d oe s n ot ex is t.

3eq ui pm en t. In co nn ect io n wit h th e rev ol vi ng lo an , a co ll at eral an al y st fo r W el ls

Farg o, Je nn ife r Fry, wro te to NSB on Sep te m be r 20 , 20 07 , req ue st in g pa y of f fig ur es fo r th e two fin an ci ng st at em en ts

. The le tt er sp eci fic al ly refe ren ced Fi n a nc in g St at em en ts 1 an d 4 an d c on ta in ed th e fo ll owi ng lan gu ag e:

Thi s le tt er is t o c o n f

i r m th at up on rece ip t of fu nd s fro m W el ls Farg o Equ ip m en t Fi na nc e, In c. fo r th e enti re pa y of f of al l a c c o u n t s th at y ou ag ree to te rm in at e y ou r se cu rit y in te res t in al l th e co ll at eral [o f Neg us

So ns , Inc .]

. . .
W e ha ve pr ep ared an am en dm en t to y ou r UCC fil in g( s) to effe ct ua te thes e termina tio ns . P le as e in di cat e y ou r co ns en t to th e fil in g of th es e
am en dm en ts , an d y ou r au th or iz at io n fo r us to fil e th em on y ou r be ha lf, by sig ni ng in th e sp ace p ro vi de d b el ow. 6

An ei gh t-p ag e li st of eq ui pm en t an d ot he r pe rs on al pr op ert y was at ta ch ed to th e le tt er.

Bru ce Cram er, a se ni or vi ce-p res id en t at NSB, si gn ed th e co ns en t req ue st ed by We l l s Farg o on Sep te m

be r 21 , 20 07

. In hi s de po si ti on , Cram er ad m it te d th a t h i s si gn at ur e o n t he let te r ga ve th e ap pe aran ce t ha t h e co ns en te d t o t he rel eas e o f al l o f th e li en s se cu rin g Loa n No. 7, no t jus t li en s on th e eq ui pm en t li st ed on th e at ta ch m en t. He t es ti fie d:

Q. I do n't wan t to be at a de ad h o r s e ab ou t Exh ib it 1. Bu t aft er al l th is di sc us si on , I m ean , do y ou feel li ke y ou m ad e a mi s ta ke si gn in g th is wit ho ut co nt act in g J en ni fer Fr y ?

A. W el l, af

te r se ei ng it th e way

it is , y es , I th in k I d id

. Q. Bec au se y ou 're sa y in g y ou r in te nt was ne ve r to rel eas e an y th in g bu t th e li en on th e eq ui pm en t?

Em ph as is ad de d. 6

4A. Yes.

Q. But y ou ad m it th at th is do cu m en t p ur po rts to rel eas e al l l ie ns ?

A. That 's t he way

it lo ok s t o m e, y es

. Q. Oka y

. So wou ld it be fai r to sa y th at y ou m ad e a m is ta ke by si gn in g th is ?

A. That 's t he way

it wou ld lo ok to m e, y es

. 7

The ne xt da y , an NSB ad m in is tra ti ve as si st an t re s p o n d ed wit h th e pa y of f

am ou nt as of Sep te m

be r 28 , 20 07

. The to ta l was $8 53 ,98 4.0 8. The le tt er no te d th at

“ [u ]pon rece ip t of pa y of

f al l li en s wil l be rel eas ed .” Loa n No. 7 was pa id in fu ll on 8 Sep te m be r 28 , 20 07 , bu t NSB ne ve r fil ed an y te rm in at io n st at em en ts

. In st ead , W el ls Farg o te rm in at ed th e two fin an ci ng st at em en ts as so ci at ed wit h Loa n No. 7
ap pr ox im at el y a y ear la te r by fil in g two fin an ci ng st at e men t “ Am en dm en ts ” on Aug us t 1 1, 2 00 8.

On May 15 , 20 08 , aft er Loa n No. 7 ha d be en pa id , th e Deb to r e x e c u te d a pr om is so ry

no te wit h M ut ua l o f Om ah a Ban k fo r Loa n 2 10 40 09 (“ Loa n No . 9”) , in th e am ou nt of $3 03 ,26 2.5 0. The m at ur it y da te was Nov em be r 15 , 20 08 , an d th e lo an

was se cu red by a co m

m erci al se cu rit y ag reem en t, a de ed of tru st , an d gu aran ti es , al l of whi ch were d at ed May 15, 2 00 8.

Neg us -So ns , In c., fil ed a Ch ap te r 11 ba nk ru pt cy pe ti ti on on Sep te m be r 23 , 20 09

. The cas e was co nv ert ed to on e un de r Ch ap te r 7 on Feb ru ary 18 , 20 10 , on th e

Depo si ti on of B ru ce Cr am er, 7 2: 6- 72 :2 1, Ba nk ru pt cy Co ur t fo r th e Dis tri ct 7 of Nebr as ka , Cas e No. 1 0- 80 64 , Doc. No . 36

. Em ph as is ad de d. 8

5m ot io n o f th e Uni te d S ta te s Tru st ee, an d Ap pe ll ee Ri ck D. Lang e was ap po in te d a s

th e Ch ap te r 7 t ru st ee o f th e Deb to r’s ba nk ru pt cy est at e.

DISCUSS IO N The pa rti es (as well as th e ba nk ru pt cy co ur t) ha ve fram ed th is di sp ut e la rg el y in te rm s of whe th er th e Am en dm en ts to NSB’s Fi na nc in g St at em en ts fil ed by W el ls Farg o were effe ct iv e in te rm in at in g Mu tu al of Om ah a’s in te res t in th e Pro pe rty. The Trus te e, Uni te d St at es , an d Uni on Pl an s al l arg ue th at th e u n c o n t ro ve rte d fact s

es ta bl is h th at W el ls Farg o ha d th e au th or it y to fil e th e Am en dm en ts te rmi n a t i n g Fi na nc in g St at em en ts 1 an d 4. Alt ern at iv el y , th ey arg ue th at th e Am en dm en ts were effe ct iv e in te rm in at in g NSB’s Fi na nc in g St at em en ts ev en i f We l l s Farg o di dn ’t

au th or iz e th em

. The ba nk ru pt cy co ur t de te rm in ed th at NSB au th or iz ed W el ls Farg o to t e r mi na te th e fin an ci ng st at em en ts as so ci at ed wit h Loa n No. 7 an d gr an te d th e Trus te e’s m ot io n fo r su m m ary jud gm en t p rimaril y on th at ba si s.

The reco rd su pp or ts th e ba nk ru pt cy co ur t’s de te rm in at io n th at W el ls Farg o ha d th e au th or it y to te rm in at e NSB’s fin an ci ng st at em en ts

. Howev er, we al so affi rm on th e ba si s th at te rm ina

ti on of th e fin an ci ng st at em en ts was un ne ces sa ry be cau se NSB’s (an d th us Mu tu al of O m aha’s) se cu rit y in te res t in th e Pro pe rty was ex ti ng ui sh ed whe n Loa n No. 7 was pa id in fu ll in Sep te m be r 20 07

. In li gh t of th es e ru li ng s, we do no t

9

ne ed to ad dr es s th e m or e ge ne ral q u es ti on of whe th er un au th or iz ed te rm in at io n st at em en ts are ef

fect iv e. 1 0

W e can affi rm

on an y gro un d s up po rte d b y

th e rec or d. Phi

pp s v. FDIC , 9 41 7 F .3d 10 06 , 10 10 (8t h C ir. 2 00 5)

. W e are als o h es it an t t o e nd or se th e h ol di ng in Ros wel l Ca pi ta l Pa rt ne rs 1 0 LLC v . Alte rn at iv e Co ns t. Te ch no lo gi es , 20 10 W L 34 52 37 8, 8 (S.D. N.Y. 201 0) , rel ie d o n b y

th e Tru st ee, t ha t a t erm in at io n s ta te m en t fi le d b y a th ird pa rty is effe ct iv e reg ard le ss of wh et he r it was a ut ho riz ed . Neb. Re v. St . U.C.C. § 9

- 51 3( b) , whi ch go ve rn s t he effe ct iv en es s o f te rm in at io n s ta te m en ts , st at es : “ Excep t

as ot he rw is e p ro vi de d i n s ect io n 9 -5 10 , up on th e fi li ng of a ter m in at io n s ta te m en t

6A. Wel ls Far go au tho ri zed the termina tio n of al l li ens perf ecte d by Fina nci ng Sta tements 1 an d 4

.

The ba nk ru pt cy co ur t fo un d th at W el ls Far g o a u t h or iz ed th e te rm in at io n st at em en ts ba se d on th e “ fo ur co rn ers ” of th e writ te n co m m un ic at io ns be twee n W el ls Farg o and NSB regar di ng th e pa y of f of Loa n No. 7 and te rm in at io n of NSB’ s lie ns

. Sp eci fic al ly, th e ba nk ru pt cy co ur t fo un d th at th e Sep te m be r 20 , 2 0 0 7 l e t t er fro m W el ls Farg o r e q u e s ti ng pa y of f fig ur es an d th e te rm in at io n of (o r au th or it y to
te rm in at e) NSB’s s ecu rit y in te res t i n “ al l t he co ll at eral of [ Neg us -So ns , Inc .] ” an d NSB’s un q u a l i f

i e d , si gn ed co ns en t to th at le tt er ga ve W el ls Farg o au th or it y to
te rm in at e Fi na nc in g S ta te m en ts 1 an d 4 in th ei r en ti ret y . W e ag ree.

As em ph as iz ed ab ov e, th e Sep te m be r 20 , 20 07 le t t e r fro m W el ls Farg o sp eci fic al ly id en ti fie d Fi na nc in g St at em en ts 1 an d 4 (b y f i l i n g nu m be r) an d st at ed

un eq ui vo cal ly th at W el ls Farg o was se ek in g “ th e enti re pa y of f of al l acco un ts [an d] th at y ou ag ree to te rm in at e y ou r se cu rit y in te res t in al l th e co ll at eral [o f Neg us -So ns , In c.] . . .” NSB ga ve it s un qu al ifi ed co ns en t to th is req ue st no t on ce, but twi ce: fir st by si gn in g th e Sep te m

be r 20 le tt er as req ue st ed by W el ls Farg o, an d se co nd by st at in g in it s pa y of

f le tt er th e ne xt da y th at “ Upo n rece ip t of pa y of f al l li en s wil l be rel eas ed .” The un am bi gu ou s refere nc e to “ al l” acco un ts , “ al l” co ll at eral , an d “ al l” li en s le av es

wit h t he fil in g o ffi ce, t he fin an ci ng st at em en t t o wh ic h t he ter m in at io n s ta te m en t rel at es ceas es to be effe ct iv e. . . .” (Em ph as is ad de d.) § 9-5 10 (a) s ta te s: “ A fil ed

reco rd is effe ct iv e o nl y

to th e ex te nt th at it was fi le d b y a pe rs on th at m ay

fil e it

un de r Sec ti on 9-5 09 .” And § 9 -5 09 st at es : “ A per so n m ay fil e an am en dm en t ot he r th an an am en dm en t t ha t ad ds co ll at eral co ve red by a fin an ci ng st at em en t o r
an am en dm en t t ha t ad ds a de bt or to a fi na nc in g s ta te m en t o nl y if: (1) th e se cu re d pa rt y o f r eco rd au th or iz es th e fi li ng

. . . . " (Em ph as is ad de d.) Ros wel l’s ho ld in g ap pe ars to be co nt rary to t he pl ai n l an gu ag e o f th e Uni fo rm Co m m erci al Co de

. Se e W il li am

H. Henn in g & Fred H. Mil le r , 45 Th e Uni

fo rm Co mmerc ia l Co de La w Let te r 1, 4 (20 11 ) (cri ti ci zi ng Ro swe ll as b ei ng co nt rary to t he law)

.
7no qu es ti on th at W el ls Farg o so ug ht an d NSB co ns en te d to th e rel eas e of al l of NSB’s

li en s i n t he Debt or ’s col la te ral co ve red by Fin an ci ng Sta te m en ts 1 an d 4

.

Mu tu al of Om ah a co nt en ds th at th e refe ren ce to an d at ta ch m en t of a li st of
sp eci fic co ll at eral in th e Sep te m be r 20 , 20 07 le tt er li m it s th e a u t h or it y so ug ht an d

co ns en t gr an te d t o a t e r m in at io n of th e li en s ag ai ns t on ly th e co ll at eral li st ed

. Bu t

no th in g in th e te xt of th e le tt er co nv eys s u c h a li m it at io n. To th e co nt rary, th e rep eat ed us e of th e wor d “ al l” in th e le tt er, an d NSB’s Sep te m be r 21 , 20 07 res po ns e st at in g th at “ al l li en s wil l be rel eas ed ,” in di cat es th at th e pa rti es in te nd ed jus t th at – a rel eas e o f al l o f NSB’s l ie ns

.

Mo reo ve r, to th e ex te nt th e refe ren ce to sp eci fic co ll at eral crea te s an am bi gu it y in th e co m

m un ic at io ns , th at am

bi gu it y is res ol ve d – ag ai ns t NSB (an d, th us , ag ai ns t Mu tu al of Om ah a) – by NSB Sen io r Vice Pres id en t Bru ce Cr am er’s ad m is si on th at NSB’s co ns en t to th e Sep te m be r 20 , 20 0 7 l e t t e r m is ta ke nl y ga ve W el ls Farg o th e

au th or it y to rel eas e al l of th e li e n s se cu rin g Loa n No. 7, no t jus t li en s on th e eq ui pm en t l is te d o n t he att ach m en t.

The refo re, we affi rm the ba nkr upt cy co ur

t’ s de te rm ina tion th at W el ls Farg o ha d th e au th or it y

to ter m in at e Fi na nc in g S ta te m en ts 1a nd 4 i n Au gu st 20 08 , th ereb y te rm in at in g M ut ua l o f Om ah a’s se cu rit y in te res t i n t he Debt or ’s per so na l p ro pe rty.

B. Mutua l of Omaha ’s in tere st in the Prope rty w as ex tin gu is hed w hen NSB

w as pa id in fu ll

.

In it s ru li ng , th e ba nk ru pt cy co ur t al lu d e d t o th e fact th at “ whe n th e ba nk

rece iv ed it s req ue st ed p a yo u t fo r Loa n No. 7, th ere was no ba si s fo r it s co nt in ue d

as se rti on of an in te res t in th e pe rs on al pr op ert y co ll at eral fo r th at lo an .” Tha t is th e st ro ng es t ba si s fo r affi rm in g t h e ba nk ru pt cy co ur t’s de te rm in at io n th at Mu tu al of Om ah a n o l on ge r ha s a s ecu rit y in te res t i n t he Pro pe rty.

8“ A se cu rit y in te res t can no t ex is t in de pe nd en t of th e ob li ga ti o n it se cu res .” 1 1

Co ns eq ue nt ly, on ce th e lo an as so ci at ed wit h Fi na nc in g St at em en ts 1 an d 4 (Loa n No. 7) was pa id of

f – an d Mu tu al of Om ah a co nc ed es th at it was – NSB’s se cu rit y in th e Pro pe rty was ex ti ng ui sh ed , re g a r d le ss of whe th er th e Fi na nc in g St at em en ts were te rm in at ed by N SB o r W el ls Farg o (wi th or wi th ou t au th or it y ).

Mu tu al of Om ah a co nt en ds th at th e Pro pe rty als o serv ed as se cu rit y fo r Loa n No. 3, bu t, a s n o t e d a b o ve , Mu tu al of Om ah a co ul d no t po in t to su ch a se cu rit y ag reem en t in th e reco rd , a nd we were, in de ed , u na bl e t o fin d on e. And th e de ed of
tru st se cu rin g Loa n No. 3 on ly co ve rs pe rs on al pr op ert y at ta ch ed to th e real pr op ert y

su bjec t to th e de ed of tru st

. The re ha s be en no su gg es ti on t h a t th e Pro pe rty is
at ta ch ed to th at real pro pe rty.

The refo re, we affi rm the ba nk ru pt cy co ur t on th e ad di ti on al gr ou nd th at Mu tu al of Om ah a's in te res t in th e Pro pe rty wa s e x t i ng ui sh ed whe n W el ls Farg o pa id of f NSB’s Loa n No . 7 i n S ep te m be r 20 07

.

CONCLUSI ON Fo r th e r e a s o n s st at ed ab ov e, we affi rm th e or de r of th e ba nk ru pt cy co ur t
gr an tin g th e Trus te e’s m ot io n fo r su m m ary jud gm en t an d de nyin g Mu tu al of Om ah a’s

m ot io n fo r su m

m ary jud gm en t.

In re Ad va nc ed Avia ti on , Inc

. , 10 1 B .R. 31 0, 3 13 (Ban kr . M.D. Fla. 1 98 9)

. 1 1 Se e a ls o Un is

ys Fin . Cor

p. v. Res ol ut io n T

ru st Co rp

. , 97 9 F .2d 60 9, 6 11 (7t h C ir. 19 92 ) (“ A li en is pa ras it ic on a cl ai m . If th e cl ai m di sa pp ears —p oo f! t he li en is go ne .”); In r e Lei su re Time Sp or ts , Inc

. , 19 4 B .R. 85 9, 8 61 (B.A.P. 9t h C ir. 1 99 6) (“ A sec ur it y

in te res t ca nn ot ex is t ... in de pe nd en t fr om th e o bl ig at io n wh ic h i t

se cu res .”).

9