First National Bank & Trust Co. v. Ford Motor Credit Co.

The opinion of the court was delivered by

Fromme, J.:

This controversy is between a bank and a credit company, both claiming prior security interests in three vehicles allegedly sold by a car dealer. The trial court held that the bank’s security interests were prior and ordered the. vehicles released to the bank. The credit company appeals.

Heritage Ford Lincoln Mercury, Inc., (Dealer) of El Dorado, Kansas, was in the business of selling new cars. On February 18, 1981, it quit business. On February 24, 1981, it voluntarily surrendered its entire new car inventory to the credit company. Vehicle 1…