Peoples Bank of Elk Valley v. Murfreesboro Production Credit Ass'n (In Re Lee)

MEMORANDUM

RALPH H. KELLEY, Bankruptcy Judge.

This is a dispute between three creditors, each of which had a perfected security interest in livestock owned by the bankrupt, Johnny Lee. One of the creditors, Mur-freesboro Production Credit (MPC), took some cattle and pigs and sold them. The other creditors, two banks, contend they are entitled to all or part of the proceeds from MPC’s sale.

MPC perfected its security interest by filing a financing statement in June, 1978. That was after Peoples Bank of Elk Valley had filed and before First National Bank of Huntland filed. When all the security…