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MATTER OF WHATLEY

No. 88-4474.

874 F.2d 997 (1989)

In the Matter of John W. WHATLEY and Ruby L. Whatley, Whatley Farms, Inc., Debtors. U.S. SMALL BUSINESS ADMINISTRATION, Plaintiff-Appellant, v. GUARANTY BANK & TRUST COMPANY, Defendant-Appellee.

United States Court of Appeals, Fifth Circuit.

June 7, 1989.

Attorney(s) appearing for the Case

Joyce A. Oblon, Office of Gen. Counsel, Small Business Admin., Washington, D.C., Patricia D. Rogers, Asst. U.S. Atty., Robert Q. Whitwell, U.S. Atty., Oxford, Miss., for plaintiff-appellant.

Gretchen Pumphrey, Pat Scanlon, Bobby L. Dallas, Jackson, Miss., John W. Garrard, Montgomery, Varnado, Garrard & Trotter, Belzoni, Miss., for defendant-appellee.

Before GARZA, JOLLY, and JONES, Circuit Judges.

EDITH H. JONES, Circuit Judge:

In this lien priority dispute between competing creditors, two questions are at issue: whether the debtor Whatley Farms, Inc. is a corporation under Mississippi law and whether Whatley Farms, Inc. ever obtained rights in the collateral (in this case farming equipment) which it pledged as security to the Small Business Administration ("SBA"). If either question is answered in the negative, a subsequent lienholder Guaranty Bank & Trust...

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