NAT. BANK OF DETROIT v. Eames & Brown, Inc.

We are called upon to determine which creditor has greater rights to a certain fund. Plaintiff-appellee, National Bank of Detroit (hereinafter NBD), claims priority as a secured creditor pursuant to Article Nine of the Uniform Commercial Code. Defendant Westinghouse Electric Corporation claims priority pursuant to MCLA 570.151 et seq.; MSA 26.331 et seq. The issue for decision is:

Whether an unsecured creditor claiming under MCLA 570.151, which imposes a trust fund for materialmen and laborers, takes priority over a prior perfected security interest in all present and after-acquired contract…