1st Source Bank v. Wilson Bank & Trust

OPINION

DAMON J. KEITH, Circuit Judge.

This appeal presents a single question of first impression under Tennessee law: whether the term “proceeds” as used in a company’s financing statement includes its accounts receivable. The district court found that it does not. For the reasons set forth below, we AFFIRM.

I. BACKGROUND

The uncontroverted facts in this case are as follows. Beginning in late 2004, 1st Source Bank (“1st Source”) entered into a series of secured transactions with K & K Trucking and J.E.A. Leasing (collectively “Debtors”) for the sale or lease of certain tractors and trailers. The…