Professor of Law Ingrid Michelsen Hillinger examines the decision in First National Bank of Picayune v. Pearl River Fabricators, Inc., 2007 La. LEXIS 2520 (Nov. 16, 2007). It is the first opinion from a state high court to rule on U.C.C. Section 9-316 governing post-filing changes in the law governing a creditor's perfection. Professor Hillinger analyzes the case's complicated fact pattern and writes:

     Although the details are muddy, the moral of the section 9-316 story is clear. A clause in a security agreement prohibiting a debtor from disposing of collateral is not 100 percent failsafe. Debtors have been known to violate the terms of their security agreements. The creditor must monitor. And the monitoring creditor needs to understand the new rules of the game. Under revised Article 9, a debtor’s location is a term of art. It is technical. Section 9-307 defines where a debtor is located for purposes of the Article 9 choice-of-law rules.

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