In re Tri-County Materials, Inc.
United States District Court for the Central District of Illinois
114 B.R. 160 (1990)
Tri-County (plaintiff/debtor), which sold sand and gravel to Ladd Construction, separately leased transport equipment from KMB and granted KMB a security interest in a portion of the Ladd account as collateral, without KMB ever filing a financing statement; the lease payments amounted to about 12 percent of the total Ladd account, and neither party had previously entered this type of security arrangement. After Tri-County's bankruptcy filing, the bankruptcy court found the assignment was both significant and not a casual, isolated transaction, ruling KMB's unfiled security interest unperfected.
Under Uniform Commercial Code § 9-302(1)(e), is there an exception to the requirement that a security interest holder must file a financing statement to perfect the interest in cases involving an assignment of accounts that was (1) an insignificant amount of the total outstanding accounts and (2) a casual or isolated transaction?