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IN RE STATE STREET AUTO SALES, INC.

Bankruptcy No. 87-40076JFQ, Adv. No. 87-4021.

81 B.R. 215 (1988)

In re STATE STREET AUTO SALES, INC., Debtor. MULTIBANK NATIONAL OF WESTERN MASSACHUSETTS, N.A., Plaintiff, v. STATE STREET AUTO SALES, INC.; Frank Cuzzone; Webe Auto Sales, Inc.; Agawam Motor Company; Rosemary Galari; Car Barn, Inc.; and John Doe, Being Divers Parties Who Have Consigned Vehicles to the Debtor, Defendants.

United States Bankruptcy Court, D. Massachusetts.

January 13, 1988.

Attorney(s) appearing for the Case

Steven Weiss, Cooley, Shrair, Alpert, Labovitz & Dambrov, Springfield, Mass., for MultiBank Nat. of Western Massachusetts, N.A./plaintiff.

Peter Stern, Springfield, Mass., for debtor/defendant Frank Cuzzone.

Jane Crosby, Santaniello, Posnik, Basile & Rideout, Springfield, Mass., for Car Barn/defendant.

MEMORANDUM

JAMES F. QUEENAN, Jr., Bankruptcy Judge.

A bank holding a security interest in the inventory of a car dealer seeks to extend its security to vehicles which have been consigned by their owners to the dealer for sale. Presented is a question of statutory construction involving considerable tension between Articles 2 and 9 of the Uniform Commercial Code. After a trial and submission of memoranda of law by the parties, the Court today issues a separate...

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