Re Investors & Lenders LTD 165 BR. 389 BKRTCY D.N.J. 1994."

Under the New Jersey Uniform Commercial Code (NJUCC ) promissory note is ""instrument," security interest in which must be perfected by possession. " Clearly the courts demand possession of the note before the bank can collect. Important to know you are paying the correct Bank for the loan.

Re Investors & Lenders LTD

The issues presented on these motions are whether the defendants' security interests in the notes were properly perfected and, if not, whether they are avoidable by the debtor-in-possession under 11 U.S.C. § 544(a).This court has jurisdiction pursuant to 28 U.S.C. § 1334(b) and 157(a). This is a core proceeding under 28 U.S.C. § 157(b)(2)(K).

Re Investors & Lenders LTD

The assignments of mortgages also referenced the assignment of the underlying note, obligation, or bond.

Re Investors & Lenders LTD

It is also undisputed that none of the members of Class 9 ever had possession of the notes underlying the assignments of the mortgages and that the debtor has retained continuous possession of the notes.

Re Investors & Lenders LTD

Summary judgment is appropriate where the court concludes that "there are no genuine issues of material fact and that the moving party is entitled to judgment as a matter of law." FED.R.CIV.PRO. 56(c)Perfection of security interests is determined by state law.An instrument is perfected only by possession with limited exceptions.Therefore, unless the NJUCC does not apply to the promissory notes at issue or the facts fit within an exception to the general rule that an instrument is perfected by possession, the defendants hold unperfected interests in the notes because they did not take possession.