Gold Medal Products, Inc. v. Love Enterprises, Inc.

HOGAN, Judge.

This appeal presents a question of priority of interest in the proceeds of a lawsuit under the provisions of § 400.9-301(l)(b), RSMo 1986. 1 Section 400.9-301(l)(b), prior to its amendment in 1988, read as follows:

“(1) Except as otherwise provided in subsection (2), an unperfected security interest is subordinate to the rights of ... (b) a person who becomes a lien creditor without knowledge of the security interest and before it is perfected ...”

The language is the language of the 1962 version of the Uniform Commercial Code. The import of § 400.9-301(l)(b) has been explained…