General Motors Acceptance Corp. v. Third National Bank in Nashville

OPINION

CANTRELL, Judge.

This is a dispute over who has a prior security interest in a 1989 GMC pickup. The combatants are General Motors Acceptance Corporation, the inventory financer of a GMC dealer, and Third National Bank in Nashville, the purchaser of chattel paper covering the pickup. The primary question is whether a sale actually took place. Once that threshold is crossed the question becomes one of priority when the truck was returned to the dealer. The lower court resolved the question in favor of GMAC. For the reasons set forth in this opinion, we reverse.

GMAC held a security…