This decision holds that a consignor must file a UCC-1 financing statement to perfect its security interest in proceeds of the sale of consigned goods by the consignee. Article 9 generally treated consignors as secured creditors and the general rules for perfection of security interests apply to consignors as well. While section 9319 gives the consignee the power to sell and transfer title to consigned goods as if the consignee were their owner, the section does not deal with rights in sale proceeds. As no other special consignment provision deals with a consignor’s interest in sale proceeds, the consignor’s rights in proceeds are governed by the general rules governing security interests in proceeds, including the general requirement of filing a UCC-1 to perfect that interest.
Ninth Circuit Court of Appeal (Kurtz, J.); October 23, 2017; 2017 WL 4768381.