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PRAIRIE STATE BANK v. I.R.S.

No. 1 CA-CIV 8818.

155 Ariz. 219 (1987)

745 P.2d 966

PRAIRIE STATE BANK, an Illinois banking corporation, Defendant Cross-Claimant Appellant, v. INTERNAL REVENUE SERVICE OF the TREASURY DEPARTMENT, United States of America, Defendant Cross-Defendant Appellee.

Court of Appeals of Arizona, Division 1, Department B.

Review Denied December 1, 1987.

Attorney(s) appearing for the Case

Shimmel, Hill, Bishop & Gruender, P.C. by Richard B. Kelly, Charles E. Maxwell, Phoenix, for defendant cross-claimant appellant.

United States Dept. of Justice by Roger M. Olsen, Asst. Atty. Gen., Michael L. Paup, William S. Estabrook, Barbara I. Hodges, Washington, D.C., and Paul R. Corradini, Asst. U.S. Atty., Phoenix, for defendant cross-defendant appellee.

CORCORAN, Judge.

Secured party Prairie State Bank (the Bank) appeals from summary judgment awarding the Internal Revenue Service (IRS) certain insurance proceeds owed the debtor by Farmers Insurance Company of Arizona (Farmers) as a result of the theft of the collateral from the debtor's residence in Arizona. We must determine whether under A.R.S. §§ 47-1101, et seq., Arizona's version of the Uniform Commercial Code (UCC),1

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