City Bank & Trust Co. of Portage v. Don's Electric, Inc. (In Re Don's Electric, Inc.)

MEMORANDUM DECISION

ROBERT D. MARTIN, Chief Judge.

Don’s Electric, Inc. (“Don’s”), a prime contractor on a number of construction projects, filed its chapter 7 petition in bankruptcy on September 7, 1982. The plaintiff, City Bank & Trust Co. of Portage (“the bank”), made several business loans to Don’s prior to bankruptcy. A perfected security agreement grants the bank a first security interest in Don’s “general intangibles, accounts, [and] contract rights ... whether now owned or hereafter acquired ... and all proceeds and products of the foregoing....” Accordingly the bank claims first…