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In re Gunnison Center Apartments, LP

United States Bankruptcy Court for the District of Colorado
320 B.R. 391 (2005)


Lenox Mortgage V Limited Partnership (Lenox) (defendant) held a deed-of-trust note and security agreement with Gunnison Center Apartments, Inc. (Gunnison) (plaintiff) in connection with a five-building apartment complex. The note and agreement assigned to Lenox all rents, issues, profits, and income resulting from the property. After defaulting on payments under the note, Gunnison filed for Chapter 11 bankruptcy pursuant to the United States Bankruptcy Code (Code). Lenox filed a demand for an accounting of cash collateral and refused to allow Gunnison to use any of the rents collected from the property. Lenox then filed a motion for relief from the automatic stay imposed under Chapter 11 of the Code.

Rule of Law


Holding and Reasoning (Romero, J.)

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