In Re Tri-County Materials, Inc.

ORDER

MIHM, District Judge.

Pending before the Court is an appeal and cross-appeal of the bankruptcy court’s decision that while Appellant KMB, Inc. did not have a valid security interest in funds owing to the Debtor, KMB did have a valid mechanics lien on those funds. For the reasons stated below, the bankruptcy court is affirmed.

FACTS

Tri-County Materials, the Debtor below, operated a sand and gravel pit. Ladd Construction Company was. a general contractor which had a contract with the State of Illinois to construct a portion of Interstate 39. Ladd and Tri-County entered into a contract…