Mercantile Bank v. Norville (In Re Norville)

OPINION

LARRY L. LESSEN, Bankruptcy Judge.

The issue before the Court is whether the Bank has a valid perfected security interest in a government disaster check issued by the United States Department of Agriculture Farm Assistance Agency which the Debtors received pursuant to the Crop Loss Disaster Assistance Program.

The Debtors, Patrick and Traci Norville, had an ongoing borrowerAender relationship with Mercantile Bank. The most recent renewal note was dated March 2, 1999, and was in the principal sum of $142,999.42. The Debtors’ debt to the Bank was secured in part by a Security Agreement…