Gallatin National Bank v. Lockovich (In re Lockovich)

OPINION

WARREN W. BENTZ, Bankruptcy Judge.

ISSUE

The issue is whether the lienholder on a 22 foot motorboat with a purchase price of $32,500 and a purchase money security interest of $26,500 is perfected without the filing of financing statements under the Uniform Commercial Code.

FACTS

On August 20, 1986, debtors purchased a motorboat 22 feet long weighing 3,200 pounds (a 1986 Chapparel Villian III) for $32,500 and borrowed $26,756.14 from the Gallatin National Bank (“Bank”). The debtors granted to the Bank a security interest in the boat. The Bank duly filed a financing statement with the…