Producers Cotton Oil Co. v. Amstar Corp.

Opinion

STONE (W. A.), J. *

Statement of the Case

Appellant, Amstar Corporation (Amstar), appeals from a money judgment rendered against it in an action for conversion of crop proceeds. The case presents a number of novel issues in California involving the interplay of sections 9306, 9307 and 9318 of the California Uniform Commercial Code.

We are called upon to determine two main issues. The first is whether a secured creditor’s implied authorization of sale of collateral relinquishes the creditor’s security interest in collateral proceeds. We hold that the creditor’s security interest in the…