Advance Process Supply Company, an Illinois Corporation v. Litton Industries Credit Corporation, a Delaware Corporation, Defendant

HARLINGTON WOOD, Jr., Circuit Judge.

In this dispute between a seller/guarantor and a creditor, we must decide who shall bear the burden of an improper filing that failed to secure an interest in the collateral, the equipment sold. We hold that although the creditor was responsible for the faulty filing, the seller/guarantor remained liable under the with-recourse agreement due to its warranty of proper filing.

I

Advance Process Supply Company is a Chicago-based manufacturer of screen printing equipment. On August 10, 1981, Advance sold some equipment to Steel City Screen Printers of Canonsburg,…