Ppg Industries, Inc. v. The Hartford Fire Insurance Company, and United States of America

COFFRIN, District Judge:

This case involves a secured transaction priority dispute between PPG Industries [hereinafter PPG], the secured party, and the United States Government, holder of a federal tax lien. In 1970, PPG entered into a security agreement with Car Color, Inc., the debtor in this case. The agreement gave PPG a security interest in all of the debtor’s inventory and equipment. It further provided that Car Color was to insure the secured property, paying all of the costs thereof and assigning to PPG all right to receive the proceeds of such insurance. The loss proceeds were to be…