Citicorp (Usa), Inc. And Southeast Bank, N.A. v. Davidson Lumber Company, Florida Steel Corp.

GODBOLD, Chief Judge:

Florida Steel Corp., a petitioning creditor of Davidson Lumber Co. and Davidson Timber Co., the “debtors,” appeals from the judgment of the district court. That court held that a certificate of deposit (CD) constituted cash proceeds under Fla.Stat.Ann. Sec. 679.306(1) (West Supp.1983), and that therefore the appellees, Citicorp and Southeast Bank, had a continuing perfected security interest in the CD at issue, even though they were not in possession of the instrument. The district court’s decision reversed the holding of the bankruptcy court, 19 Bankr. 871…