In the Matter of Thrift Shoe Co., Inc., Debtor. The National Cash Register Co. v. Curtis B. Danning, Receiver, and Thrift Shoe Co., Inc.

Good Law
502 F.2d 1211·15 U.C.C. Rep. Serv. (West) 525·2 Collier Bankr. Cas. 2d 125·1974 U.S. App. LEXIS 6884
United States Court of Appeals for the Ninth CircuitSeptember 13, 197472-1875California790 words

Opinion

Opinion

Skopil, J.

Appellant, The National Cash Register Co. (NCR), claims a security interest in cash registers sold to the debtor, Thrift Shoe Co., Inc. (Thrift), under a sales contract and security agreement.

Before the entire purchase price of the cash registers had been paid, Thrift filed a petition for an arrangement under Chapter XI of the Bankruptcy Act. Upon application of the receiver, Curtis B. Danning, the referee found that NCR’s financing statement failed to comply with California law. He declared that NCR had an unperfected security interest and that its lien was subordinate to that of the receiver. The United States District Court for the Central District of California confirmed the referee’s order. NCR appeals.

To perfect a security interest of the type involved, § 9401(1) (c) of the California Commercial Code requires that a financing statement be filed with the Secretary of State. The content of the statement is specified by § 9402(1), which states in relevant part as follows:

The added requirement that the trade name be included in the financing statement modifies the Uniform Commercial Code and is unique to California. In In re Thomas, 466 F.2d 51 (9th Cir. 1972), we…

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