Deposit Guaranty National Bank v. Central Louisiana Grain Co-Op, Inc.

LAMY, Judge.

The plaintiff bank filed a security agreement noticing third parties that it held a security interest in a corn crop. The defendant grain cooperative sold the crop to a third party and, from the proceeds, paid a harvester and hauler. The plaintiff filed suit asserting the defendant had converted these funds as the bank had filed a security agreement and the harvester and hauler had not filed notice of any privilege. The defendant maintained that there is no filing requirement for the privileges due to necessity and custom. The lower court found in favor of the defendant. The bank…