Bankruptcy Case Is Reminder On Collateral Ownership Issue

By Deborah Enea, Frank Montes de Oca and Kayla Weldon (June 27, 2022, 4:15 PM EDT) -- On April 28, the U.S. Bankruptcy Court for the Northern District of Oklahoma in Kirtley v. Mabrey Bank (In re: Rudick) held that an entity other than the debtor may grant a lien on the debtor's property, affirming the legal standard that consent of the true property owner is sufficient to give a debtor, who lacks title in the goods, sufficient rights in collateral to grant a security interest in that property.[1]

As a result, the bankruptcy court also held the bank's security interest, perfected prior to the debtor's bankruptcy, was enforceable and had priority over the bankruptcy trustee's rights to...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!


Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!