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HARLEY-DAVIDSON MOTOR CO. v. BANK OF NEW ENGLAND—OLD COLONY, N.A.

No. 89-1671.

897 F.2d 611 (1990)

HARLEY-DAVIDSON MOTOR CO., INC., and ITT Commercial Finance Corp., Plaintiffs, Appellants, v. BANK OF NEW ENGLAND—OLD COLONY, N.A., Defendant, Appellee.

United States Court of Appeals, First Circuit.

Decided March 6, 1990.

Attorney(s) appearing for the Case

Mark A. Stull with whom Gordon N. Schultz, Schultz & Bednarz, P.A., Boston, Mass., Stephen R. White, and Pucci & Goldin, Inc., Providence, R.I., were on brief, for plaintiffs, appellants.

James E. Purcell with whom Partridge, Snow & Hahn, Providence, R.I., were on brief, for defendant-appellee.

Before CAMPBELL, Chief Judge, BREYER and TORRUELLA, Circuit Judges.

BREYER, Circuit Judge.

A motorcycle manufacturer ("Harley") and a finance company ("ITT") loaned money to a motorcycle dealer ("Clemence") to help finance the dealer's new motorcycle inventory. To guarantee repayment they took and perfected a secured interest in the dealer's entire— new and used cycle — inventory and in all his motorcycle sale proceeds. Subsequently, a bank ("Old Colony") provided the dealer with a line of credit, primarily...

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