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IN RE VIRGINIA BLOCK CO.

Bankruptcy No. 7-80-00688, Adv. Proceeding No. 7-80-0247.

6 B.R. 670 (1980)

In re VIRGINIA BLOCK COMPANY, Debtor. VIRGINIA BLOCK COMPANY, Plaintiff, v. BANK OF CHRISTIANSBURG, Defendant.

United States Bankruptcy Court, W.D. Virginia, Roanoke Division.

October 23, 1980.

Attorney(s) appearing for the Case

Wetherington, Flippin, Melchionna & Burton, Roanoke, Va., for debtor/plaintiff.

William McGhee, Craft & McGhee, Christiansburg, Va., for defendant.

H. CLYDE PEARSON, Bankruptcy Judge.

The issue presented here is twofold: one, whether the bankruptcy court has jurisdiction over the interest the debtor, Virginia Block Company, has as beneficiary of a second deed of trust securing payment of certain notes and, two, whether the bankruptcy court can compel the first deed of trust noteholders, The Bank of Christiansburg, to employ the equitable principle of marshaling and foreclose on property not secured by a Virginia...

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