Covey v. Morton Community Bank (In Re Sabol)

OPINION

THOMAS L. PERKINS, Chief Judge.

This adversary proceeding is before the Court, after trial, on the complaint by Charles E. Covey, as Trustee of the Chapter 7 estate (“TRUSTEE”), to determine the validity of a security interest held by Morton Community Bank (“BANK”) in several items of sound equipment owned by Michael S. Sabol, one of the Debtors (“DEBTOR”). The matter was taken under advisement by the Court and the parties have submitted briefs. The main issue is whether the Composite Document Rule can rescue the BANK from the absence of a security agreement.

The following facts are not…