Lavonia Manufacturing Co. v. Emery Corp. (In Re Emery Corp.)

OPINION

EMIL F. GOLDHABER, Bankruptcy Judge:

The basis of the dispute at bench is whether a seller’s right of reclamation un der § 2702 1 of the Uniform Commercial Code (“the UCC”) of Pennsylvania is precluded by the existence of a creditor holding a security interest in the debtor’s after-acquired property. For the reasons stated herein we find that the seller may reclaim the goods.

The facts of this case are as follows: 2 Lavonia Manufacturing Company (“Lavo-nia”) executed security agreements with several creditors which agreements were duly perfected prior to February 24, 1983. At all times…