Robert Leo Brown and Billie Louise Brown, Bankrupts, Warren L. McConnico Trustee v. First National Bank of Dewey

LOGAN, Circuit Judge.

This is an appeal from a judgment entered in favor of the First National Bank of Dewey, Oklahoma, and against Warren L. McConnico, trustee in bankruptcy. The question for decision is whether the district court correctly ruled that proceeds from a fire insurance policy paid to a secured creditor are “proceeds” from the disposition of the insured inventory within the meaning of the Uniform Commercial Code provision adopted as Okla.Stat.Ann. tit. 12A, § 9-306 (West 1963). For reasons that appear below, we conclude the district court was correct.

The facts have been…