Sandoz v. Federal Deposit Insurance

POLITZ, Chief Judge:

The Chapter 7 bankruptcy trustee appeals the ruling of the bankruptcy court, 131 B.R. 53, affirmed by the district court, concerning the validity of a secured interest in certain accounts receivable. For the reasons assigned, we affirm.

Background

In March 1982, Pernie Bailey Drilling Company and Interfirst Bank Fannin1 executed an agreement entitled “Security Agreement — Assignment of Contract Rights” to secure a series of loans. The instrument gave the Bank a security interest in all of Bailey’s present and future accounts receivable. The instrument was duly recorded in…