(287) Thus an American
floating lien will have priority over any later taker of a security interest in the same collateral.
The District Court did not consider whether Paramount's reclamation claim was deemed "valueless" because on the petition date, the goods that were subject to the reclamation demand were encumbered by Circuit City's pre-petition lenders'
floating lien on inventory; and whether Paramount's reclamation rights extended to the proceeds of its goods.
In the meantime, Trico's lender, Chase Manhattan had a
floating lien in all of Trico's inventory, including whatever rights Trico had in the goods purchased from Cargill.
A lender with a perfected
floating lien in all of the debtor's existing and future inventory is also a good faith purchaser under the Uniform Commercial Code.
The PACA trust even grants unpaid PACA suppliers a priority over a secured creditor with a
floating lien in the debtor's accounts and inventory.
Virtually all courts have held that the debtor's lender, with a
floating lien in all of the debtor's existing and future inventory, has a superior claim to inventory otherwise subject to a trade creditor's reclamation claim.