Utica National Bank & Trust Co. v. Associated Producers Co.

OPALA, Justice:

The issues to be resolved are twofold: [1] Did the trial court err in ruling that the secured creditor did not have a perfected security interest in funds collected by the debtor’s broker because these funds constituted “contract rights” rather than “accounts’ proceeds”? [2] If the secured creditor is to be deemed to have a perfected interest in the proceeds of accounts, is the broker entitled to credit for payments advanced on invoices which are in excess of the amount collected after due adjustments had been allowed?

We hold that (a) the funds collected by the broker from the…