In re John’s Bean Farm of Homestead, Inc.
United States Bankruptcy Court for the Southern District of Florida
378 B.R. 385 (2007)
- Written by Jamie Milne, JD
Facts
William Klein (creditor) loaned money to John’s Bean Farm of Homestead, Inc. (John’s) (debtor), which John’s used to purchase equipment. When John’s defaulted, Klein took a security interest in the equipment via a security agreement and secured promissory note. To perfect his security interest, Klein filed a UCC-1 financing statement with the Florida Secured Transaction Registry. In the financing statement, Klein identified the debtor as John Bean Farms, Inc., rather than using the correct name. Subsequently, John’s filed for bankruptcy. Klein filed a proof of claim in the bankruptcy proceeding, asserting that he had a perfected, secured claim. The bankruptcy trustee performed a search of the Florida Secured Transaction Registry using the correct name. Klein’s financing statement did not appear on the initial results page and could be found only by hitting the “previous” button 60 times. The trustee thus argued that Klein’s financing statement was seriously misleading and his security interest was therefore unperfected.
Rule of Law
Issue
Holding and Reasoning (Isicoff, J.)
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