Omega Environmental Inc. v. Valley Bank, N.A.
United States Court of Appeals for the Ninth Circuit
219 F.3d 984 (2000)
Relevant factsFree
Valley Bank (creditor) held physical possession of a certificate of deposit (CD) it had issued to Omega Environmental (debtor), and when Omega filed for bankruptcy, the bank sought relief from the automatic stay, arguing its possession of the CD perfected its security interest because CDs qualify as "instruments" under the UCC. Omega argued the CD was a different type of collateral that could not be perfected merely through possession; the bankruptcy court and district court agreed with the bank, and Omega appealed.
IssueFree
Whether the proper method for perfecting a security interest in collateral depends upon how that type of collateral is classified under the UCC.