According to BB&T, the Subcontractors could not invoke Section 362(b)(3)'s stay exception because their unperfected lien rights in project proceeds were not an "interest in property" of CSS.
The court held the Subcontractors' "inchoate" unperfected lien rights that arose pre-petition were an "interest in property."
(377) Delivery of an execution creates an
unperfected lien against the taxpayer's personal property, but this execution lien would have been junior to all tax liens of the DTF.
The bankruptcy trustee used the "strong arm" powers of the Bankruptcy Code to unseat the creditor's
unperfected lien.
The programme is to help auto finance providers avoid potential losses due to title exceptions from the liens they fund through their network of dealers.According to Larry Highbloom, president of VINtek, 'The Dealer Monitoring Program reduces and prevents the accumulation of
unperfected liens for auto finance lenders of all sizes.
This means that upon the bankruptcy filing, a debtor, or a creditors' committee (in Chapter 11), may act as a hypothetical judgment lien creditor with the ability to unseat prior,
unperfected liens. With the assignment of the avoidance powers by the debtor or trustee, a creditors' committee may use the "strong arm" powers to unseat the creditor's alleged lien.
