Security Interests & Certificated Securities - Citizens Bank & Trust v. Piggly Wiggly Alabama Distributing Co., Inc.
Citizens Bank & Trust v. Piggly Wiggly Alabama Distributing Co., Inc., [Ms. 2150749, Jan. 20, 2017] __ So. 3d __ (Ala. Civ. App. 2017). The Court of Civil Appeals affirms the judgment of the Jefferson Circuit Court, Bessemer Division, holding that a security interest a bank held in certain stock was subordinate to the right to that same stock held by a lien creditor. The opinion reviews control and delivery of certificated securities under §§ 7-8-102, 7-8-301, 7-9A-313 and 7-9A-314, Ala. Code 1975. Because the undisputed evidence established that the bank did not have physical possession of the stock certificate, nor support the bank’s contention that any other entity was holding the stock for the bank. The trial court’s conclusion that the bank did not perfect its security interest pursuant to § 7-8-301(a) was supported by substantial evidence such that the lien creditor’s security interest in the stock was superior to the bank’s interest.