Opinion ID: 32797
Heading Depth: 2
Heading Rank: 1

Heading: BSA’s Assignment of a Security Interest

Text: In January 1991, BSA obtained financing for its inventory and other aspects of its business from ITT Commercial Finance Corporation (ITT).2 In exchange for the financing, BSA assigned ITT a security interest in BSA’s accounts and other intangibles. BSA and ITT sent notice of the assignment to Wal-Mart. The top portion of the notice defines the interest assigned. The bottom portion of the notice is titled “Customer Acknowledgment,” and contains the following language: The undersigned, referred to in the above Notice of Assignment, hereby acknowledges receipt of the above Notice of Assignment . . . and agrees to make all current and future payments owed to Assigner directly to ITT at the above mailing address, notwithstanding any terms in any agreement, contract, invoice or purchase order to the contrary. After Wal-Mart received notice of the assignment, Wal-Mart paid sums owed on BSA invoices directly to ITT. Wal-Mart also reduced some of its payments to BSA by taking certain set-offs against the 2 ITT recovered $355,072.12 from Wal-Mart for improper adjustments at trial and subsequently settled with Wal-Mart. ITT is not a party to this appeal. 4 BSA/ITT account.3