The appellant apparently would have us recognize as the equitable owner only a person who "is barred, as a matter of state law, from holding legal title to property of which it is the beneficial owner." In re Howell-Kessler Co., 447 F. Supp. 976, 977 (S.D.N.Y. 1978). An example of such a person would be a property owner who has mortgaged his property in a "title theory" state.
Inherent in this conclusion is the further proposition that Ritsos, under Illinois law does not have the necessary legal or equitable interest required to be a claimholder under Bankruptcy Rule 301.See In re Howell-Kessler Co., 447 F. Supp. 976, 977 (S.D.N.Y. 1978) (a beneficiary of a land trust has equitable ownership only upon condition that he is barred as a matter of state law from holding legal title). The claimant cites several Illinois cases which hold that a beneficiary has more than just personal rights under a land trust.
Such a construction provides uniform entitlement to Chapter XII protection to persons similarly situated, despite the vagaries of state law." 447 F. Supp. 976, 977 (S.D.N.Y. 1978). See also, In re Romano, 426 F. Supp. 1123 (N.D.Ill. 1977).