Allstate Financial Corporation v. Dundee Mills, Inc.

HILL, Circuit Judge:

FACTS

Allstate Financial Corporation (“Allstate”) is in the business of making secured loans and financing and factoring receivables. In June, 1983, Allstate entered into a financing arrangement with Bleckley Lumber Company d/b/a Bleckley Cotton Company (“Bleckley”) and Bleckley’s principal, William Carlton Lawson, whereby Allstate agreed to factor certain of Bleckley’s accounts receivable. Bleckley was engaged in the business of buying and selling cotton. Pursuant to this financing arrangement, Bleckley granted Allstate a continuing general lien and security interest in,…