Borg-Warner Acceptance Corp. v. Twelves (In re Utah Agricorp, Inc.), 12 B.R. 573 (Bankr.D.Utah)
PUBLISHED
In a case subject to the Bankruptcy Act, the court considered plaintiff's claim that it held a perfected security interest in a harvester that was repurchased by debtor from a dealer in Idaho. At issue was whether plaintiff's security interest became unperfected under Utah law when the harvester was transported from Idaho to Utah. The court rejected plaintiff's claims of constructive possession and re-perfection, concluding that Utah Code Ann. §70A-9-103(1)(d) and 70A-9-302 required a security agreement to be filed in Utah within four months of the harvester's arrival there, in order for the lien to remain perfected. Plaintiff's failure to file a security agreement in Utah within four months rendered its lien unperfected back to the date of the harvester's arrival in the state.