MBK Services, Inc. v. Cole Taylor Bank, et al

No. 12-3026 (Il. 1st Dist. Sept. 26, 2013)

The Illinois Appellate Court affirmed the trial court’s granting of the lender’s motion for summary judgment, finding that a bank’s perfected security interest in the borrower’s collateral, including the proceeds of a sale of a borrower’s assets after an assignment for the benefit creditors, is superior to a business creditor’s claim to such proceeds, even if such proceeds were “supposed” to be held in trust by the borrower.

Related Practice: Appellate Litigation