In the Matter of Bufkin Brothers, Inc., Bankrupt. Multi-Mart Branch Office, First State Bank v. Appliance Buyers Credit Corporation

E. GRADY JOLLY, Circuit Judge:

This appeal presents a priority dispute between two competing creditors who had security interests in the same collateral of a bankrupt debtor. The appellant bank filed a financing statement at a time when no prior security interest in the debtor’s property appeared of public record. The appellee credit corporation, however, previously had filed a continuation statement that was returned by the filing clerk because of an alleged defect in the instrument, but which was not resubmitted by the credit corporation. The bankruptcy court held that the credit…