Delphi Automotive Systems, LLC v. Capital Community Economic/industrial Development Corporation, Inc.

Summary

The Kentucky Supreme Court held that the agreement labeled a lease created a security interest because Certified Tool was obligated to make all payments and become owner of the equipment. Article 9 applied because the governmental-unit exclusion covered governmental borrowers, not governmental secured creditors, no other Kentucky statute expressly governed the interest, and public policy did not excuse nonfiling. Delphi's perfected security interest therefore had priority, requiring entry of judgment in its favor.