Tuloka Affiliates, Inc. v. Security State Bank

I respectfully dissent from the majority opinion’s conclusion that the bank should be allowed to defeat the finance company’s secured interest in the proceeds from the sale of collateral. The majority discusses the interrelationship between the bank’s right of setoff and the creditor’s security interest, but fails to define the status of that relationship under Kansas law today. Instead, the majority simply concludes that the debit occurred in the ordinary course of business and without notice of conflicting claims. I cannot agree.

Assuming the finance company’s security interest is properly…