In the the September 3 edition of Expert’s Corner, included on www.csctransactionwatch.com, Paul Hodnefield, Esq. discusses the determination of the relative priorities of a statutory possessory lien and a UCC security interest, using the case of J & M Cattle Company, LLC, v. Farmer’s National Bank, 2014 Ida. LEXIS 198 (Idaho Aug. 1, 2014) as a case study.
According to Hodnefield, “being the first to file a UCC financing statement does not always guarantee that the secured party will have the superior interst in collateral. Statutory liens may take priority even over prior perfected security interests.”
You can read the full article here.