Bank of Beaver City v. Barretts' Livestock, Inc.

KAUGER, J.;

T1 The dispositive issue presented is whether the good faith requirement of 12A 0.8.2011 § 2-403 extends to third parties-in this case an unpaid seller of cattle-and requires that the third party be notified of a debtor's financial condition.1 We hold that it does not.

1 2 Bank alleges that on August 9, 2004, it perfected a security interest in all of Lucky Moon's livestock, including all after-acquired livestock, giving it a superior claim to cattle purchased by Lucky Moon from Barretts to satisfy the debt owed by Lucky Moon to Bank of approximately $2,000,000 as of May 20, 2010.…