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STEVLEE FACTORS, INC. v. STATE

136 N.J. Super. 461 (1975)

346 A.2d 624

STEVLEE FACTORS, INC., A CORPORATION, PLAINTIFF, v. THE STATE OF NEW JERSEY, UNITED STATES FIDELITY AND GUARANTY COMPANY, AND RELIANCE INSURANCE COMPANY, DEFENDANTS.

Superior Court of New Jersey, Chancery Division.

Decided October 10, 1975.

Attorney(s) appearing for the Case

Mr. Barnett Berr, attorney for plaintiff.

Mr. William F. Hyland, Attorney General of New Jersey (Mr. Edward Schwartz, Deputy Attorney General, appearing).

Mr. Dennis J. Drasco, attorney for defendant Reliance Insurance Company (Messrs. Lum, Biunno & Tompkins, attorneys).

Mr. Richard R. Width, Jr., attorney for defendant United States Fidelity and Guaranty Company (Messrs. Lindabury, McCormick & Estabrook, attorneys).

CIOLINO, J.S.C.

The question presented in this matter appears to be one of first impression and reaches the court on the return date of an order to show cause and cross-motions for summary judgment. The issue is whether the interest created by the filing of a security agreement and financing statement in accordance with the Uniform Commercial Code by the assignee of the accounts receivable of a general contractor is superior to the rights of sureties on performance...

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