Brief Fact Summary. Minot Builder’s Supply, (Plaintiff), moves for relief from the automatic stay under 362 of the Bankruptcy Code. The trustee objects claiming Plaintiff is not a secured creditor.
Synopsis of Rule of Law. A writing establishes a security agreement when the language in the writing objectively indicates that the parties may have intended to create a security in the collateral and the parties actually intended to create a security interest.
However, although a standard form financing statement by itself cannot be considered a security agreement, an adequate agreement can be found when a financing statement is considered together with other documents.View Full Point of Law
Issue. Whether a U.C.C.-1 financing statement alone is sufficient under U.C.C. Section:9-203(b)(3)(A) to create a security interest in the Debtor’s assets.
Held. No. A U.C.C.-1 financing statement alone is insufficient under U.C.C. Section:9-203(b)(3)(A) to create a security interest in the Debtor’s assets
Discussion. There is simply no language in the financing statement evincing intent to create a security agreement. There are no other writings between the parties that would objectively indicate that the parties intended to create a security interest. Therefore Plaintiff is not a secured creditor.