Major's Furniture Mart, Inc. v. Castle Credit Corp.

OPINION OF THE COURT

GARTH, Circuit Judge:

This appeal requires us to answer the question: “When is a sale — not a sale, but rather a secured loan?” The district court held that despite the form of their Agreement, which purported to be, and hence was characterized as, a sale of accounts receivable, the parties’ transactions did not constitute sales. Major’s Furniture Mart, Inc. v. Castle Credit Corp., 449 F.Supp. 538 (E.D.Pa.1978). No facts are in dispute,1 and the issue presented on this appeal is purely a legal issue involving the interpretation of relevant sections of the Uniform Commercial…