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IN RE EAST AIRPORT DEVELOPMENT, LLC

BAP No. CC-10-1141-LyPaKi. Bankruptcy No. ND 10-10634 RR.

443 B.R. 823 (2011)

In re EAST AIRPORT DEVELOPMENT, LLC, Debtor. Pacific Capital Bancorp, N.A., Appellant, v. East Airport Development, LLC, Appellee.

United States Bankruptcy Appellate Panel of the Ninth Circuit.

Decided January 5, 2011.

Attorney(s) appearing for the Case

Andrew K. Alper of Frandzel Robins Bloom & Csato, L.C., Los Angeles, CA, argued for Appellant, Pacific Capital Bancorp, N.A.

William C. Beall of Beall & Burkhardt, Santa Barbara, CA, argued for Appellee, East Airport Development, LLC.

Before: LYNCH, PAPPAS, and KIRSCHER, Bankruptcy Judges.

AMENDED OPINION

LYNCH, Bankruptcy Judge.

Appellant, Pacific Capital Bancorp, N.A. ("Pacific Capital"), appeals an order of the bankruptcy court authorizing the sale of real property free and clear of Pacific Capital's lien pursuant to 11 U.S.C. § 363(f)2 and the use of Pacific Capital's cash collateral pursuant to § 363(c)(2). We AFFIRM as to the § 363 sale, but VACATE and REMAND with respect to the cash collateral...

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