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Bank of the West v. Commercial Credit Financial Services, Inc.
United States Court of Appeals for the Ninth Circuit
852 F.2d 1162 (1988)
Bank of the West (plaintiff) made a loan to Allied in 1982 that was secured by all of Allied’s existing and after-acquired inventory and accounts. Bank of the West perfected its security interest by promptly filing a financing statement. Separately, Commercial Credit Financial Services, Inc. (CCFS) (defendant) made loans to BCI in 1984, secured by all of BCI’s existing and after-acquired inventory and accounts, which included a beverage business. Later that same year, Allied purchased the beverage business from BCI. Bank of the West claimed that it had a superior security interest in the inventory and accounts of the beverage business, through its security agreement with Allied, as after-acquired collateral. CCFS claimed that it had a superior interest in the same inventory and accounts based on its security agreement with BCI.
Rule of Law
Holding and Reasoning (Thompson, J.)
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