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In re Filtercorp, Inc.

United States Court of Appeals for the Ninth Circuit
163 F.3d 570 (1998)


Filtercorp, Inc. (debtor) took out a loan from Paulman. The promissory note granted Paulman a security interest in Filtercorp’s accounts receivable and inventory. The note, which Paulman drafted, was accompanied by an attached listing of Filtercorp’s inventory. Filtercorp filed for bankruptcy and contended that Paulman did not have a security interest in Filtercorp’s accounts receivable and inventory acquired after the security agreement was executed. The bankruptcy court granted Filtercorp summary judgment, holding that Paulman did not have a security interest in the after-acquired property absent an express provision to that effect in the security agreement. The bankruptcy appellate panel affirmed. Paulman appealed.

Rule of Law


Holding and Reasoning (Schwarzer, J.)

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