Vernon L. Haynes, Appellee, v. General Electric Credit Corporation, Eppa Hunton, Iv,registered Agent, Appellant, 582 F.2d 869 (4th Cir. 1978)

The district court held that a security interest in an airplane, duly recorded pursuant to the Federal Aviation Act, is defeated where there is a subsequent purchase of the airplane under circumstances which, under State law, priority would be accorded the subsequent purchaser. Specifically, the court held that the section of the Federal Aviation Act, 49 U.S.C. § 1403, which provides for a system of recordation of conveyances affecting title to or security interests in civil aircraft of the United States, does not preempt the rule of the Uniform Commercial Code that a "buyer in ordinary course of business" takes chattels free of a security interest created by his seller.¹  Congress did not intend, held the district court, to create affirmative priority of federally recorded interests as against competing rights declared by State law.

Having considered the briefs and the record, and after oral argument, we affirm the judgment below on the basis of the district court's opinion. 432 F. Supp. 763 (W.D. Va. 1977).

AFFIRMED.