Farmers State Bank v. Ethridge (In re Ethridge)

MEMORANDUM OPINION AND ORDER RE: COMPLAINT OF FARMERS STATE BANK SEEKING DECLARATORY JUDGMENT AS TO PRIORITY OF HOG SALE FUNDS AND CROSS-COMPLAINT OF INTERVENOR, UNITED STATES OF AMERICA, TO DETERMINE THE NATURE, EXTENT, AND PRIORITY OF LIENS

WILLIAM B. LEFFLER, Bankruptcy Judge.

At issue is whether Farmers State Bank (the Bank) possesses a security interest in the proceeds realized from the sale of 110 hogs formerly belonging to the Debtors by virtue of “present and future debt clauses” contained in security agreements executed by the parties.

This is a case of first impression for this Court.…