UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF KENTUCKY
MARVIN THOMAS BUSH
DEBTOR CASE NO. 92-70487
This matter is before the Court on the Amended Motion for Relief from Stay of creditor Central Bank & Trust Co. ("Central Bank"), filed herein on August 2, 1993. Central Bank timely filed a proof of claim in this matter alleging that it is a secured creditor of the debtor. The amount of the claim is $7,328.53, secured by a properly perfected lien on an item of dental equipment, specifically a PC 1000 Panoramic X-Ray machine, which the debtor purchased with the funds borrowed from Central Bank. Issues have been raised concerning the nature of the liability of the debt, whether individual or corporate, and the ownership of the equipment.
The loan agreement executed by the debtor and Central Bank, a copy of which has been filed in this case, is dated December 27, 1991. The debtor signed the document as "Marvin T. Bush, DMD, PSC". However the record in this case indicates that, as of the date of execution of the loan agreement, the PSC had been administratively dissolved for more than a year. KRS 271B.14-050 provides that a corporation that has been administratively dissolved may "continue its corporate existence, but may not carry on any business except that appropriate to wind up and liquidate its business and affairs."
The provision goes on to list the activities in which a dissolved corporation may engage. These activities do not include the acquisition of or granting a security interest in new property. It is therefore apparent that the debtor herein is both the owner of the equipment and individually liable for the debt to Central Bank, his inclusion of the term "PSC" in his signature notwithstanding.
In consideration of the foregoing, it is the opinion of this Court that Central Bank's Motion for Relief from Stay should be sustained. An order in conformity with this opinion will be entered separately.
By the Court -
Susan J. Mohler, Esq.
Thomas W. Goodman, Jr., Esq.