First National Bank of Atoka v. Calvin Pickle Co‪.‬

1 This is an action to recover on certain notes executed by O.B. Spencer to the Plaintiff and purportedly secured by Spencers 1967 peanut crop. This is a transaction intended to create a security interest in personal property, and is thus governed by Article 9 of the Uniform Commercial Code (12A O.S. 1971 § 9-101 et seq.). The Plaintiff seeks to recover from the purchasers to whom Spencer sold the crop without applying all of the proceeds of the sale to payment of the notes ostensibly secured thereby. Under 12A O.S. 1971 §§ 9306 (2) and 9-311 of the Oklahoma Uniform Commercial Code, the Plaintiff does retain a continuing security interest in the collateral of a secured transaction after an unauthorized sale. See Uniform Commercial Code, comment 3 to section 9-306.