Notice of Hearing Regarding Mortgage Preference

Release Date: 
Tuesday, November 14, 2006

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UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF MICHIGAN

Gold v. Interstate Financial Corp.                                                 No. 04-4023
Gold v. MILA, Inc.                                                                              No. 04-5113
Lim v. New Century Mortgage Corp.                                            No. 05-5164
Kohut v. Mortgage Electronic Registration Systems, Inc.        No. 05-5207
Gold v. Nations Finance Corp.                                                      No. 05-5311
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NOTICE OF HEARING

On Monday, December 11, 2006, at 12:00 p.m., in Courtroom 100 in the Theodore Levin United States Courthouse, 231 West Lafayette St., Detroit, Michigan, a hearing will be held on the following issue in these adversary proceedings:

When a county register of deeds does not maintain an “entry book” as identified in MCLA 565.24 and 565.25, when, if ever, is a mortgage deemed “recorded”?

This is the question that the Michigan Supreme Court declined to answer upon this Court’s certification. In re Certified Question from the United States Bankruptcy Court for the Eastern District of Michigan, 722 N.W.2d 423 (2006).

Because this issue is common in these and many other adversary proceedings pending in this Court, the judges of the Court have determined that the following procedures are necessary to promote the efficient and expeditious resolution of those adversary proceedings:

1. The hearing will be a consolidated hearing conducted by all of the bankruptcy judges of this Court; however, each judge will separately decide the issue to be addressed at the hearing, as well as any other issues in the adversary proceedings assigned to his or her docket.

2. Arguments shall be limited to 30 minutes for the plaintiffs and 30 minutes for the defendants, to be divided among counsel as they determine. Counsel are encouraged to coordinate their arguments.

3. The parties’ briefs shall be filed by December 4, 2006. Counsel may file the briefs that they previously filed in the Michigan Supreme Court.

4. Permission is granted to the Michigan Land Title Association to file an amicus brief and to argue at the hearing for up to 10 minutes after the arguments of counsel for the parties. This brief shall be filed by December 4, 2006.

5. Any others seeking to participate as amicus may file a motion and a brief on the merits. Those papers shall be filed in Gold v. MILA, Inc., by December 4, 2006, and will then be considered deemed filed in each of the cases. Any request by an amicus to participate in oral argument shall
be made in writing with the motion.

6. The Court will arrange for each judge to get copies of all the briefs; courtesy copies by the parties are not required.

Entered by Order of the Court
Katherine Gullo
Clerk of the Court

November 14, 2006

Copy to: Stuart Gold
Gene Kohut
David Lerner
Kelly Myers
Matthew Vivian
John G. Cameron, Jr.