Braun v. Bouma Dairy (In Re Coast Grain Co.)

FINDINGS OF FACT AND CONCLUSIONS OF LAW RE MOTIONS FOR SUMMARY JUDGMENT

W..RICHARD LEE, Bankruptcy Judge.

Coast Grain Company (“Coast Grain”) was a merchant that sold livestock feed products on open account to customers in the agricultural livestock and dairy industries. Coast Grain’s customers frequently carried large “prepaid” credit balances in their accounts. As the customers purchased feed products, the resulting charges were debited against the prepaid accounts. This adversary proceeding tests (1) whether a trustee can collect those accounts receivable, for sales made within 90 days…