Note. On September 21, 2002, Provident perfected its security interest in the collateral by filing its UCC-1 Financing Statement with the Florida Secretary of State. (Jt. Stip. ¶ s 11-15).
National defaulted under the terms of the SBA Note and the Provident Note by failing to make payments due on February 19, 2002, and on all subsequent payments required to be paid by the Notes. Provident elected to accelerate the amount due on both the SBA Note and the Provident Note.
On May 3, 2002, National filed its voluntary Petition for Relief (the National Bankruptcy) under Chapter 11 of the Bankruptcy Code. On May 7, 2002, this Court entered an Order in National's Bankruptcy case authorizing National, as the DIP, to continue business (May 7th Order). The May 7th Orderendorsed by the Debtor from National's DIP account made payable: (1) to Chase were for the Debtor's personal automobile; (2) to Serendipity CC were for the Debtor's personal membership at the Sarasota tennis club; (3) to the City of Tampa was for the Debtor's personal parking ticket; and (4) to "cash" were transferred to petty cash, out of which the Debtor paid himself a salary, violating the May 7th Order.
In opposition, the Debtor contends that the funds were disbursed from National's DIP account in accordance with the June 5th Order that approved National's use of cash collateral to pay its regular and ordinary business expenses and were not disbursed for his personal benefit. In support of this contention, the Debtor testified at trial that National had paid for