The Merchants National Bank of Mobile v. Robert H. Ching, Jr., Etc.

HATCHETT, Circuit Judge:

In this bankruptcy action, a bank asserted that it held a security interest in certain claims arising from a security agreement between the bank and a debtor. The district court classified the claims under the Alabama Uniform Commercial Code. In reviewing these classifications, we affirm in part, reverse in part, and remand.

I. BACKGROUND

A. Facts and Proceedings Below

Maritime Coatings, Inc. (Maritime), performed specialized sandblasting and coating work on liquid natural gas carriers for various shipyards including Newport News. Since its inception in 1974, Maritime and…