In the Matter of Del Norte Depot, Inc., Bankrupt. The Chartered Bank of London v. Lawrence A. Diamant, as Trustee of Del Norte Depot, Inc.

The Chartered Bank of London (Bank) appeals from a district court order affirming a judgment of the bankruptcy court holding the Bank’s security interest in property of Del Norte Depot, Inc. (Del Norte) unperfeeted and ordering repayment of moneys paid it by the debtor. We reverse.

I

The issues in this case revolve around alleged defects in filings of UCC financing statements and publication of bulk transfer notices by the Bank. The validity of payments made by Del Norte to the Bank are also challenged. The facts are somewhat complex.

In March 1972, Del Norte opened “The Depot Restaurant.” To refinance purchases of furniture, fixtures and equipment which it had earlier purchased from several vendors, on March 27, 1972 Del Norte borrowed $62,499.00 from the Commercial and Farmer’s National Bank. On the same day, Del Norte executed a written security agreement in favor of the Bank purporting to secure the loan and all future advances made by the Bank with specific items of Del Norte property. The Bank recorded a UCC financing statement in the office of the California Secretary of State on April 13, 1972 but failed to list the debtor’s trade name in its filing. No bulk transfer…