Bankr. L. Rep. P 73,608, 12 Ucc rep.serv.2d 557 in Re Seaway Express Corp., Debtor. National Bank of Alaska, N.A. v. Warren L. Erickson, Trustee for Seaway Express Corporation

912 F.2d 1125 Bankr. L. Rep. P 73,608, 12 UCC Rep.Serv.2d 557 In re SEAWAY EXPRESS CORP., Debtor. NATIONAL BANK OF ALASKA, N.A., Appellant, v. Warren L. ERICKSON, Trustee for Seaway Express Corporation, Appellee. No. 89-35872. United States Court of Appeals, Ninth Circuit. Argued and Submitted Aug. 6, 1990. Decided Aug. 30, 1990. Kimberly W. Osenbaugh, Bogle & Gates, Seattle, Wash., for appellant. Eugene J. Craig, Seattle, Wash., for appellee. Appeal from the Ninth Circuit Bankruptcy Appellate Panel. Before WRIGHT, BEEZER and TROTT, Circuit Judges. BEEZER, Circuit Judge: 1 The National Bank of Alaska (NBA) appeals a decision of the Bankruptcy Appellate Panel (BAP), granting summary judgment to Erickson, trustee in the bankruptcy of Seaway Express Corp. (Seaway). NBA claims a priority interest in property owned by Seaway. The BAP rejected NBA's claim. We affirm. 2 * During 1985-86, NBA provided a line of credit to Seaway secured by a credit agreement. Under the agreement, Seaway's credit line was set as a percentage of its inventory and "eligible" accounts receivable (accounts less than 90 days old). NBA eventually loaned Seaway over $9 million, of which at least $6 million…