Date of Decision:
February 17, 2012
On a summary judgment motion, whether Defendant had a valid pre-petition lien on Debtors' vehicle, where the lien was noted on the reverse side of the certificate of title when Debtors purchased the vehicle and on Debtors' application for a new title, but where the record did not reflect a separate security agreement that created or provided for a security interest?
Defendant did not have a valid post-petition lien on Debtors' vehicle because Defendant did not have a valid security agreement as defined by S.D.C.L. § 57A-9-102(a)(73), where the certificate of title, the application for a new title, or anything else in the record did not reflect objective indicia of an actual underlying security agreement between Debtors and Defendant.
Full Bankruptcy Court Decision: