PASCACK COMMUNITY BANK VS. UNIVERSAL FUNDING, LLP
UNIVERSAL FUNDING, LLP VS. ANTHONY E NESTICO
A-2501-09T3
This case presents the competing interests of two secured
creditors - a factoring company and a bank that issued a line of
credit - in the accounts receivable of a debtor. After the
debtor defaulted, the bank sought to collect the amount due and
owing to it on the letter of credit from the factoring company,
arguing that the factoring company collected proceeds of the
accounts receivable after the bank had perfected its security
interest. The trial court granted summary judgment to the bank
and entered judgment against the factoring company for the full
amount due. We reverse because the competent evidence was
insufficient to support an award of summary judgment to the
bank. In addition, a review of the facts in light of the
perfection and priority rules of the Uniform Commercial Code
reveals the existence of genuine issues of fact. 03-17-11
