Uni Imports, Inc. v. Exchange National Bank of Chicago
United States Court of Appeals for the Seventh Circuit
978 F.2d 984 (1991)
Relevant factsFree
Exchange (defendant) held a perfected security interest in Aparacor's assets and continued extending line-of-credit advances even after UNI (plaintiff) obtained and registered a $66,000 judgment against Aparacor and sought to levy on those assets; Exchange also made roughly $2.8 million in related non-advance payments (interest, taxes, legal fees), and the district court ordered Exchange to turn over the assets to satisfy UNI's judgment.
IssueFree
Whether, under the UCC, a secured creditor's non-advances take priority over a judgment creditor's lien where the non-advances were undertaken before the lien attached.