Theo. Hamm Brewing Co. v. First Trust & Savings Bank

Harold E. Lape was a beer distributor for the plaintiff. In July of 1962 he obtained a loan from the defendant bank for which he gave a Security Agreement and Consignment covering an inventory of beer in containers, and with an after-acquired property clause. This document was filed with the Secretary of State, together with a Financing Statement as required by law in order to perfect its Security Interest.

Lape failed to keep up his payments to the bank according to his arrangements so that early in December of 1968 the bank took possession of the property Lape had on hand and thereafter sold…