Sunshine Heifers, LLC v. Purdy, et al., No. 1:13CV-00049-JHM, 2013 U.S. Dist. LEXIS 137361 (W.D. Ky. Sept. 25, 2013), aff'g., In re Purdy, No. 12-11592(1)(12), 2013 Bankr. LEXIS 3813 (Bankr. W.D. Ky. Sept. 12, 2013)

(debtor borrowed money from lender and pledged dairy cattle as collateral; lender secured interest in cattle; debtor borrowed additional money from lender pledging crops, farm products and livestock as collateral with security interest containing dragnet clause; lender secured interest; debtor later entered into "Dairy Cow Lease" with third party to allow for expansion of herd; lessor perfected its interest in the leased cattle; debtor filed bankruptcy and court determined that lease arrangement actually created a security interest rather than a true lease - lease not terminable by debtor and lease for longer than economic life of dairy cows, lessor never provided any credible evidence of ownership of cows, parties did not strictly adhere to lease terms; lender filed first and has priority to proceeds from dairy cows; lender's prior perfected security interest attaches to all cows on debtor's farm and to all milk produced post-petition and milk proceeds under 11 U.S.C. Sec. 552(b); in current action, different creditor failed to comply with court’s order requiring posting of bond as condition to stay effect of court’s prior ruling, there was no stay in effect during pendency of appeal and lender (bank) entitled to have proceeds turned over to it; feed supplier creditor did not have standing to seek surcharge of bank’s collateral under 11 U.S.C. Sec. 506(c); trustee did not file motion for surcharge and court could not order amount supplier paid for feed deliveries be retained from funds turned over to bank; bank’s motion for abandonment and turnover of proceeds granted).