Court Opinion

ID: 9517225
Source: CourtListenerOpinion
Date Created: 2023-08-07 00:10:27.11209+00
Date Added: 2024-06-11T09:41:52.659192
License: Public Domain

Mr. JUSTICE EBERSPACHER, dissenting: I do not agree that the requirement of a written security agreement signed by the debtor which contains a description of the collateral as required by the Uniform Commercial Code is satisfied by the execution of an application for a certificate of title; particularly in a situation which the parties intended the written security agreement to be a real estate mortgage and there is no evidence that they intended to create any security agreement other than the mortgage. The “bargain of the parties in fact as found by their language” was the bargain provided for in the sales contract which did provide for a security interest, namely, a mortgage on land, but that security interest was never perfected, because the debtor never became the owner of the land intended to become the security, and therefore never executed such security. As a result something never created could not be perfected by application for title. I can find no logic in holding that a security interest can only be created under the Uniform Commercial Code and the holding of the majority that a security interest is created by an application under the Motor Vehicle Code, or that “the application contained a description that was sufficient for the creation of a security interest”; nor can I find logic in holding that the security interest was both created and perfected by the application for a certificate of title under the Motor Vehicle Act, nor that it was created by the application for title and perfected by the issuance of certificate of title. I would therefore affirm.