Olympus Glass (debtor) was a glazing contractor. Olympus defaulted on its federal taxes and the Internal Revenue Service (IRS) (creditor) filed a notice of a federal tax lien. After the IRS filed the federal tax lien, Olympus obtained a line of credit loan from First Interstate Bank of Utah (creditor). The bank gave the line of credit to fund Olympus’ performance of existing glazing contracts. Olympus later filed for bankruptcy. The IRS alleged that the bank’s interest had a lower priority than the federal tax lien, because the bank’s line of credit came into existence after the IRS filed the notice of the federal tax lien. The bank alleged that its line of credit loan was a purchase-money security interest, and that it therefore had priority over the federal tax lien. The bankruptcy and district courts found in favor of the IRS and the bank appealed.