Keybank National Ass'n v. Pal I, LLC

J. JONES, Justice.

This case involves a judgment creditor, PAL I, LLC, that levied and executed upon collateral in which KeyBank had a perfected security interest. PAL argued that because KeyBank did not file a third-party claim to the collateral in accordance with I.C. § 11-203, it waived its interest in the collateral. The district court held that a perfected security interest survives a creditor’s failure to comply with I.C. § 11-203, that KeyBank’s security interest extended to the proceeds PAL realized from the sheriffs sale of the collateral, and that KeyBank was entitled to judgment…