Consolidated Equipment Sales, Inc. v. First State Bank & Trust Co. of Guthrie

DOOLIN, Justice:

This case asks us to interpret the Uniform Commercial Code to allocate rights in collateral among a Bank, a Paving Contractor and an Equipment Sales Company.

I — Facts

J. Ted McBride, an asphalt and paving contractor (McBride), acquired an Allis-Chalmers 645 wheel loader from Consolidated Equipment Sales, Inc. (Consolidated), in November 1973. Both executed a sales contract and a lease contract for the identical equipment, and under identical terms ($843.65 per month over sixty [60] months), with an identical sale/lease price ($50,619.00 including interest). The sales contract…