Affiliated Food Stores, Inc. v. Farmers & Merchants Bank

David Newbern, Justice.

In this appeal we must decide which of two parties was first to perfect its security interest in the inventory of a grocery store and is thus entitled to the proceeds of the sale of the inventory to satisfy a debt. Our holding is that the creditor which was the first to file with the office of the secretary of state prevails.

On November 1, 1986, Bill Rogers sold a grocery store named “Scotty’s Affiliated Foods” to Bob Davis d/b/a Bob’s Supermarkets of Arkansas, Inc., (Bob’s). Davis changed the store’s name to “Bob’s Thriftway.” Rogers paid off his account with the…