M. D. Hodges Enterprises, Inc. v. First Georgia Bank

Hall, Justice.

In September 1972, First Georgia Bank (appellee) loaned John K. Porter Co., a real estate brokerage firm, $10,000. To secure the loan, Porter granted to First Georgia a security interest in account commissions from M. D. Hodges Enterprises (appellant). First Georgia never filed a financing statement, but it did notify Hodges of the assignment, directing Hodges to pay the account commissions to Porter until further notice from First Georgia.

In August 1974, Porter used these same account commissions as security for a loan from Trust Company Bank. In July 1975, Trust Company…