UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF KENTUCKY
CHARLES LINTON WELLS
DEBTOR CASE NO. 90-00265
This matter is before the Court on creditor Greenup County Bank's Motion to Reconsider, filed herein on May 3, 1993. The Motion asks that the Court reconsider its Order of April 19, 1993, which overruled the Motions for Relief from Stay of Greenup County Bank and First American Bank. Those Motions related to partnership interests of the debtor which had been assigned to the creditors. This Court ruled that the language of the Assignment and the security provision of at least one relevant promissory note evidenced an intention that the Assignment be considered a secured transaction which was required to be perfected by filing.
Greenup County Bank bases its Motion to Reconsider on the language of KRS 355.9-302(1)(e), from which it quotes to support the contention that a financing statement need not be filed if the security interest is "an assignment of accounts or contract rights which does not alone or in conjunction with other assignments to the same assignee transfer a significant part of the outstanding accounts or contract rights of the assignor". This language is found in the old version of that statute. The most recent version of KRS 355.9-302(1)(e), amended in 1986, does not, however, contain the language "or contract rights". It deals only with an assignment of accounts, and such an assignment is not applicable in this matter. The particular assignments involved herein postdated this change in the statute. KRS 355.9-106 defines an "account" as "any right to payment for goods sold or services rendered which is not evidenced by an instrument or chattel paper".
It is therefore the opinion of this Court that its Order of April 19, 1993, should stand, and that Greenup County Bank's Motion to Reconsider should be overruled. An order in conformity with this opinion will be entered separately.
By the Court -
William R. Palmer, Jr., Esq.
Patricia Meigs Pitt, Esq.
Donald L. Frailie, Esq., Trustee