Federal Deposit Insurance Corp. v. Mount Pleasant Professional Building

LAVORATO, Justice.

The appellants in this declaratory judgment action are the owners of outstanding repurchase agreements bought from the now-insolvent Mt. Pleasant Bank & Trust Company (MPB). Among other things, they contend the district court erred by interpreting the agreements to preclude perfection of their security interests in the federal securities being used as collateral. As a result of the court’s interpretation, the appellants’ security interests were found to be unperfected, thus making the appellants only general creditors of MPB upon its insolvency. Because we believe the…