Nicolosi bought a diamond ring on credit from RikeKumber as an engagement present for his fiancé….

Nicolosi bought a diamond ring on credit from RikeKumber as an engagement present for his fiancé. He signed a purchase money security agreement giving Rike-Kumber a security interest in the ring until it was paid for. Rike-Kumber did not file a financing statement covering its security interest. Nicolosi filed for bankruptcy. The bankruptcy trustee claimed that the diamond ring was part of the bankruptcy estate because Rike-Kumber did not perfect its security interest. Rike-Kumber claimed that it had a perfected security interest in the ring. Did Rike-Kumber have to file a financing statement to perfect its security interest in the diamond ring?

 

 

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