Intertherm, Inc. v. Olympic Homes Systems, Inc.

OPINION

DROWOTA, Judge.

This is a suit by general creditors against an insolvent corporation and three of its shareholders. The issue is whether a security interest taken by two of the shareholders in personal property of the corporation is valid, and whether it entitles the two shareholders to priority over the general creditors as to the property covered by it.

This suit was filed on February 28, 1975, in the Chancery Court of Giles County, by plaintiff Intertherm, Inc., and others on behalf of themselves and of all other creditors of defendant Olympic Home Systems, Inc. (Olympic). In addition…