McLemore v. Carson Ltd. (In re Sealy)

MEMORANDUM

KEITH M. LUNDIN, Bankruptcy Judge.

The question presented is whether a “layaway” agreement on the back of a sales receipt creates a security interest where goods are delivered to the buyer at the time of sale but later returned to the seller. Secondarily, if the layaway agreement is insufficient to create a security interest, can the goods in the seller’s possession be recovered by a trustee under § 547 if the return was within 90 days of bankruptcy? After consideration of the exhibits, stipulations and applicable authority, the court concludes that the seller did not retain an…