196025P.pdf   03/19/2020  The Bank of Missouri  v.  Family Pharmacy, Inc.
   U.S. Court of Appeals Case No:  19-6025
   U.S. Bankruptcy Court for the Western District of Missouri - Springfield   
   [PUBLISHED] [Saladino, Author, with Schermer and Shodeen, Bankruptcy 
   Judges] 
   Bankruptcy Appellate Panel. The bankruptcy court erred in denying the Bank 
   of Missouri's motion under Code Sec. 506(b) for allowance of postpetition 
   default interest; the Panel makes no decision as to whether or when the 
   default interest rates under the notes at issue were triggered under the 
   facts of the case, as those are mixed questions of law and fact, and such 
   decisions are best left to the bankruptcy court in the first instance; the 
   Panel endorses the view that post-Ron Pair, the preconfirmation interest 
   rate to be applied under Section 506(b) to an oversecured creditor whose 
   claim is evidenced by a promissory note or similar loan agreement is the 
   contract (both non-default and default) rate set forth in the note or loan 
   agreement to the extent enforceable under applicable law; absent state law 
   to the contrary, a liquidated damages vs. penalty analysis is not 
   applicable and should not be applied to a default interest rate set forth 
   in a promissory note or similar loan agreement; equitable considerations 
   should be used sparingly and only in exceptional circumstances.