Opinion ID: 1702725
Heading Depth: 1
Heading Rank: 14

Heading: The intrastate versus interstate allocation of cost of services and materials involved in the project

Text: Unlike Sisters of the Visitation, the transaction in this case does not involve any tools and equipment. This case involves the use of money and the creation of financial obligations. Although the nature of this case blurs the distinction between the consideration of tools and equipment and the allocation of cost of services and materials factors, AmSouth has provided evidence showing (1) that in determining whether to extend a line of credit to the Deeses, AmSouth obtained a credit bureau report from Equifax, Inc., a Georgia corporation with its principal place of business in Atlanta, Georgia; (2) that AmSouth required in connection with both the original line of credit and its later increase, proof of property insurance, which was provided in the form of a policy issued by State Farm Fire and Casualty Company, an Illinois corporation; (3) that AmSouth purchased a title insurance policy in connection with the credit agreement, and the amended second mortgage, which was issued by Commonwealth Land Title Insurance Company, a Pennsylvania corporation; (4) that AmSouth relied on proof of the existence of a prior mortgage and a statement of the remaining principal balance owing under it, provided by the Texas office of Countrywide, a New York corporation; (5) that in connection with the line of credit, AmSouth obtained a flood-data certification from First American Flood Data Services, Inc., a Texas corporation with its principal place of business in Austin, Texas; and (6) that the Deeses' equityline statements were printed and mailed to them by TSYS in Columbus, Georgia. We have previously held that the procurement of insurance coverages from out-of-state, as a reasonably necessary aspect of a transaction, is properly to be considered in evaluating that transaction's impact on interstate commerce. Chesser v. AmSouth Bank, N.A., 846 So.2d 1082 (Ala.2002). Our consideration in this case of the tools and equipment factor and the allocation of cost of services and materials factor provides strong support for the conclusion that the credit agreement evidences a transaction that substantially affects interstate commerce.