Bank of Dawson v. Worth Gin Co., Inc.

Phipps, Judge.

The Bank of Dawson (Bank) extended farming loans to Jason Wiggins, who granted a security interest in his cotton crop to the Bank. Thereafter, the Bank filed a related financing statement to perfect its security interest. Wiggins later sold his cotton crop to Worth Gin Company, Inc. (Gin), which was engaged in the business of purchasing and then ginning farmers’ cotton crops. The Gin deducted from the purchase price an amount for debts Wiggins owed in connection with his farming operation and then gave Wiggins a check for the remainder. The check was made payable to Wiggins and…