Dominion Bank, N.A. v. David S. Wilson

HARRISON L. WINTER, Chief Judge:

The question for decision is whether Dominion Bank, N.A. (Bank) obtained a security interest under a Uniform Commercial Code (UCC) security agreement in the debt- or’s option to purchase real estate that the debtor had exercised before entering into the security agreement. The bankruptcy court held that the Bank did not, but its ruling was reversed by the district court, 86 B.R. 871. The debtor appeals and we reverse.

I

On August 30, 1978, the debtor, David S. Wilson, entered into an option agreement with L.B. Holyfield granting Wilson the right to purchase…