Sterling National Bank & Trust Company of New York v. Southwire Company

On September 8, 1977, Sterling National Bank advanced $3,989,696.66 to Metric International, Inc., a dealer in copper and other metals; later, Sterling periodically advanced Metric other funds. In return, Metric granted Sterling a broad security interest in the metals it dealt. The coverage of this perfected interest ranged from raw materials to goods in process, to finished goods and proceeds. In a supplement to the financing agreement, Metric promised Sterling, “[EJxcept for sales in the regular course of business, we shall not sell ... any Collateral without your prior written consent.”

This…