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Wind Mountain Ranch, LLC v. City of Temple, Texas

The issue in this case is whether limitations barred Wind Mountain Ranch's foreclosure of its deed-of-trust lien. Texas registration law allows debtors and creditors to suspend limitations but requires that extension agreements be recorded. The court focused on whether a bankruptcy order enforcing a Chapter 11 restructuring plan is a debtor-creditor extension agreement under the terms of the statute. Because a bankruptcy order is not subject to Texas Civil Practices & Remedies Code �16.037's recording requirements, the court of appeals' judgment is reversed and, without hearing oral argument, judgment is rendered in favor of Wind Mountain Ranch. Texas Supreme Court, No. 09-0026, 12-03-2010

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In this case, we decide whether Wind Mountain Ranch’s foreclosure of its deed-of-trust lien was barred by limitations. Texas registration law allows debtors and creditors to suspend limitations, but requires that extension agreements be recorded. TEX.

Today’s question is whether a bankruptcy order enforcing a Chapter 11 restructuring plan is a debtor-creditor extension agreement under the terms of the statute. We answer “no”-a bankruptcy order is not subject to section 16.037′s recording requirements. We reverse the court of appeals’ judgment and, without hearing oral argument, render judgment in favor of Wind Mountain Ranch.

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