Seaboard Fuel Corp. v. United States

How courts have described this case

Verbatim parenthetical descriptions written by other courts when citing this decision. Ranked by citation-network relevance.

• noting that, regardless of the labels used by the parties, courts will look to several factors to determine the substance of a transaction, including, recourse and which party bears the risk of non- performance
• lender holding security interest in PACA dealer’s accounts receivable was not a bona fide purchaser for value so as to give it priority over PACA suppliers’ claims
• lender holding security interest in PACA dealer’s accounts receivable was not a bona fide purchaser for value so as to give it priority over PACA suppliers’ claims
• “Where the lender has purchased the accounts receivable, the borrower’s debt is extinguished and the lender’s risk with regard to the performance of the accounts is direct, that is, the lender and not the borrower bears the risk of nonperformance by the account debtor.”

Source: CourtListener parenthetical corpus (CC0).