Recent Uniform Commercial Code Cases Affecting Agricultural Lenders and Borrowers

This article is a summary of cases for the period from September 21, 1992, through October 21, 1993, that involve agricultural lenders and borrowers and issues under the Uniform Commercial Code (UCC). I. Introduction II. General Interpretation and Scope ... A. In re Zweygardt, 149 B.R. 673 (Bankr. D. Kan. 1992) ... B. In re Temple Stephens Co., 156 B.R. 38 (Bankr. W.D. Mo. 1993) ... C. Shields v. Equine Capital Corp., 607 So. 2d 468 (Fla. Dist. Ct. App. 1992) ... D. Lake County Trust Co. v. Two Bar B, Inc., 606 N.E.2d 258 (Ill. App. Ct. 1992) ... E. Cook v. Hansen, 499 N.W.2d 94 (N.D. 1993) III. Article 2 Issues ... A. Worm v. American Cyanamid Co., No. CIV.A.HAR90-1424, 1992 WL 368062 (D. Md. Nov. 30, 1992), aff’d, 5 F.3d 744 (4th Cir. 1993) ... B. Rudiger Charolais Ranches v. Van De Graaf Ranches, 994 F.2d 670 (9th Cir. 1993) ... C. Hilt v. Draper, 836 P.2d 558 (Idaho 1992) ... D. Tongish v. Thomas, 840 P.2d 471 (Kan. 1992) ... E. Trinidad Bean & Elevator Co. v. Frosh, 1 Neb. App. 1819, 494 N.W.2d 347 (1992) IV. Type of Collateral ... A. Lambert v. Kysar, 983 F.2d 1110 (1st Cir. 1993) ... B. Union Bank & Trust Co. v. United States, 27 Cl. Ct. 403 (1992) ... C. Flores de New Mexico, Inc. v. Banda Negra International, Inc. (In re Flores de New Mexico, Inc.), 151 B.R. 571 (Bankr. D.N.M. 1993) ... D. Shields v. Equine Capital Corp., 607 So. 2d 468 (Fla. Dist. Ct. App. 1992) ... E. Greenview Ag Center, Inc. v. Yetter Manufacturing Co., 615 N.E.2d 395 (Ill. App. Ct. 1993) ... F. Friedt v. Moseanko, 498 N.W.2d 129 (N.D. 1993) ... G. National City Bank v. Golden Acre Turkeys, Inc., 604 N.E.2d 149 (Ohio 1992) V. Validity/Attachment of Security Interest ... A. Bank One v. Dettwiller (In re Dettwiller), 156 B.R. 540 (Bankr. S.D. Ohio 1993) ... B. Lyon v. May, 424 S.E.2d 655 (N.C. Ct. App. 1993). 248 … C. Friedt v. Moseanko, 498 N.W.2d 129 (N.D. 1993) VI. Conversion of Collateral ... A. United States v. Currituck Grain, Inc., 6 F.3d 200 (4th Cir. 1993) ... B. Seibert v. Noble, 499 N.W.2d 3 (Iowa 1993) ... C. Cook v. Hansen, 499 N.W.2d 94 (N.D. 1993) ... D. Michel v. Melgren, 853 P.2d 940 (Wash. 1993) VII. Waiver of Security Interest ... A. United States v. Currituck Grain, Inc., 6 F.3d 200, (4th Cir. 1993) ... B. Eastern Idaho Production Credit Ass\u27n v. Idaho Gem, Inc., 842 P.2d 282 (Idaho 1992) VIII. Perfection and Filing ... A. United States v. Currituck Grain, Inc., 6 F.3d 200, (4th Cir. 1993) ... B. Jersey State Bank v. Isringhausen (In re Isringhausen), 151 B.R. 203 (Bankr. S.D. Ill. 1993) … C. DuQuoin National Bank v. Vergennes Equipment, Inc., 599 N.E.2d 1367 (Ill. App. Ct. 1992) ... D. National City Bank v. Golden Acre Turkeys, Inc., 604 N.E.2d 149 (Ohio 1992) IX. Priorities ... A. Among Article 9 Security Interests ... 1. J. I. Case Credit Corp. v. First National Bank, 991 F.2d 1272 (7th Cir. 1993) ... 2. Bank One v. Dettwiller (In re Dettwiller), 156 B.R. 540 (Bankr. S.D. Ohio 1993) ... 3. Lyon v. May, 424 S.E.2d 655 (N.C. Ct. App. 1993) ... 4. DuQuoin National Bank v. Vergennes Equipment, Inc., 599 N.E.2d 1367 (IlM. App. Ct. 1992) ... B. Between an Article 9 Security Interest and a Statutory Lien ... 1. Horton Dairy, Inc. v. United States, 986 F.2d 286 (8th Cir. 1993) ... 2. Calumet Farm, Inc. v. Northern Equine Thoroughbred Productions, Ltd. an re Calumet Farm, Inc.), 150 B.R. 403 (Bankr. E.D. Ky. 1992) ... 3. Henry v. Pioneer Sweet Potato Co., Inc., 614 So. 2d 853 (La. Ct. App. 1993) … 4. Michel v. Melgren, 853 P.2d 940 (Wash. 1993) ... C. Between an Article 9 Security Interest and a Buyer in the Ordinary Course ... 1. Ashburn Bank v. Farr, 426 S.E.2d 63 (Ga. Ct. App. 1992) ... 2. Deutz-Allis Corp. v. Hutt Carwille, Nos. 41-91CH, 23a-92L, 1992 WL 509900 (Va. Cir. Ct. Oct. 2, 1992) ... 3. Deutz-Allis Corp. v. Salm, No. 93-1144-FT, 1993 Wis. App. LEXIS 1307 (Wis. Ct. App. Oct. 20, 1993) ... 4. Franklin v. First National Bank of Morrill, Nebraska, 848 P.2d 775 (Wyo. 1993) ... D. Between an Article 9 Security Interest and a Mortgage Holder ... 1. In re Temple Stephens Co., 156 B.R. 38 (Bankr. W .D. M o. 1993) X. Repossession and Foreclosure ... A. First Brandon National Bank v. Kerwin (In re Kerwin), 996 F.2d 552 (2d Cir. 1993) ... B. Buffalo National Bank v. United States, 26 Cl. Ct. 1436 (1992) ... C. Metropolitan Life Ins. Co. v. Castle (In re Castle), No. 93-20031-C-11, 1993 Bankr. LEXIS 1080 (Bankr. W.D. Mo. July 30, 1993) XI. Good Faith and Fair Dealing ... A. Ripplemeyer v. National Grape Cooperative Ass\u27n, 807 F. Supp. 1439 (W.D. Ark. 1992) XII. Preemption ... A. Town & Country Equipment, Inc. v. Massey-Ferguson, Inc., 808 F. Supp. 779 (D. Kan. 1992) ... B. Worm v. American Cyanamid Co., No. CIV.A.HAR90-1424, 1992 WL 368062 (D. Md. Nov. 30, 1992), aff’d, 5 F.3d 744, (4th Cir. 1993) XIII. Bulk Transfer ... A. Central Line Tractor & Equipment Co. v. Rapp, 616 N.E.2d 585 (Ohio Ct. App. 1992) XIV. PACA ... A. Cossa & Sons v. Tani Farms (In re Altabon Foods, Inc.), 998 F.2d 718 (9th Cir. 1993) XV. Bankruptcy ... A. Calumet Farm, Inc. v. Northern Equine Thoroughbred Productions, Ltd. (In re Calumet Farm, Inc.), 150 B.R. 403 (Bankr. E.D. Ky. 1992) ... B. Bel-Bel International Corp. v. Barnett Bank, 158 B.R. 252 (S.D. Fla. 1993