Covey v. First National Bank in East Peoria (In Re Balcain Equipment Co.)

OPINION AND ORDER

WILLIAM V. ALTENBERGER, Bankruptcy Judge.

This matter came on to be heard on the Trustee’s motion for summary judgment. The facts and the issue in this case are straightforward. The Debtor gave the bank a security interest in

“all accounts receivable now existing or hereafter arising; all inventory held in connection with the business of borrower”.

Subsequently, the bank took possession of the Debtor’s inventory. The Debtor filed its Chapter 7 proceeding, and the Trustee filed a preference action to recover the value of the inventory on the theory that as to after acquired…