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Secured Creditor May Collect Insurance on Damaged Collateral
In an issue of first impression in the Third Circuit, the appeals court has ruled that a secured creditor in a Chapter 7 bankruptcy may recover the insurance proceeds intended to pay for damage to its collateral, while retaining the fully repaired collateral. Stanziale v. Finova Capital Corp. (In re Tower Air Inc.), No. 03-3101 (Feb. 10).
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