Leake v. First National Bank of Broadway (In Re Shiflett)

MEMORANDUM OPINION AND ORDER

H. CLYDE PEARSON, Bankruptcy Judge.

The issue before the court is whether or not the Defendant, First National Bank of Broadway (“Bank”) has a perfected security interest in funds held by Valley of Virginia Cooperative Milk Producers Association (“Co-op”) retained from Debtors’ milk sales.

On July 18, 1983, the Debtors filed their Chapter 7 liquidation petition in this court and, thereafter, on October 26, 1983, the Trustee filed this adversary proceeding to determine the validity, priority, and extent of the Bank’s lien upon the funds retained by the Co-op of…