Richer v. Morehead

Bankruptcy Ct. did not err in upholding creditor’s unsecured claim for $945,000 arising out of agreement to purchase right to receive portion of net proceeds from sale of trust property controlled by debtors, where said agreement allowed creditor to elect to convert $700,000 (plus interest) purchase price under agreement into demand note if creditor gave debtors notice of said election on precise date set forth in agreement. Bankruptcy Ct. could properly find that creditor complied with terms of conversion option, where creditor sent said election certified mail on day before specified date in agreement. Moreover, Ct. rejected debtors’ contention that election had to be sent on specified date in order for election to be effective.