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Lisa F. Brown, Esq. <br /> July 29, 1988 <br /> Page 2 <br /> storage tank law or other environmental laws. E.g. , In re Quanta <br /> Resources Corp. , 739 F.2d 912 (3d Cir. 1984) . <br /> The Bank also is responsible for removal of the tanks. The Bank <br /> accepted an assignment of EP's leasehold, including fixtures, as <br /> collateral for a loan issued to EP in 1975 (we have evidence of <br /> the assignment of all fixtures, which would include the tanks, in <br /> a landlord's waiver between the Port and the Bank, attached as <br /> Exhibit "A") . Civil Code section 822 states that an assignee of a <br /> leasehold by way of security for a loan assumes the obligations of <br /> its assignor, if the assignment is accompanied by possession of <br /> the premises. <br /> By its actions, the Bank undeniably took possession of the <br /> premises and "stepped into the shoes" of EP. The Bank may have <br /> had some right to protect its security from forfeiture or <br /> depreciation without assuming the tenant's obligations. However, <br /> the Bank's rental payments on the EP property and seizure of EP's <br /> assets through the bankruptcy court were clearly unrelated to the <br /> protection of the Bank's security interest. The Port could not <br /> have foreclosed on EP because of the automatic stay imposed by the <br /> Bankruptcy Code. 11 U.S.C. § 362 (a) (3) . Therefore, the Bank's <br /> pretensions that it was protecting a security interest are merely <br /> a smoke screen to disguise the Bank's real actions: taking <br /> possession of the EP property then attempting to abandon it when <br /> it became clear that some liability might attach because of the <br /> tanks. <br /> In contrast to EP and the Bank's liability, the Port's <br /> responsibility for the EP tanks is attenuated. Mr. Hoslett's <br /> analysis provided with your July 8, 1988 letter to Gary Allen is <br /> hardly persuasive: His interpretation of Civil Code section 1019 <br /> is wrong. Civil Code section 1013 states the general rule in <br /> California law that, in the absence of an agreement to the <br /> contrary, a landowner may, at its choosing, have another person's <br /> fixtures on the owner's property removed or choose to assume <br /> ownership of such fixtures. Civil Code section 1019 allows a <br /> tenant to maintain trade fixtures (such as the underground storage <br /> tanks) on a leasehold during the term of a lease. This section is <br /> for the protection of tenants who otherwise would be at the mercy <br /> of landlords for the removal of their valuable trade fixtures in <br /> the absence of a specific agreement to the contrary. See Trabue <br /> Pittman Corp* v unty o£ L.A. <br /> Co , 29 C. 2d 385, 393-94 (1946) <br /> (explaining the origin of section 1019 in the context of real <br /> property taxation) . <br /> Section 1019 does not otherwise affect the rights or duties of a <br /> landlord. He still has the right under section 1013 to assume <br /> ownership of valuable fixtures placed on his property. However, <br />