Norwest Bank El Paso v. Van Tol (In Re Van Tol)

OPINION

CORNISH, Bankruptcy Judge.

The Debtors appeal a judgment determining that attempted restrictions placed upon capital retains by a dairy cooperative were ineffective and that Norwest Bank, El Paso, N.A. (“Norwest”), had a valid security interest in capital retains issued by Dairy Farmers of America, Inc. (“DFA”). For the reasons set forth below, we affirm.

BACKGROUND

The Van Tols (“Debtors”) were dairy farmers. The Debtors were members of American Milk Producers, Inc. (“AMPI”), an entity that subsequently merged with DFA. Both AMPI and DFA are agricultural cooperatives. The Debtors sold…