Poirier v. Peoples State Bank

Peoples State Bank appeals an order granting summary judgment in favor of Golden and Bernadean Poirier. The issue is whether Peoples State Bank possessed either a security interest in the Poiriers’ certificate of deposit or properly exercised its right of setoff against those funds entitling it to refuse payment upon demand. Because we conclude that the bank had no valid security interest in the certificate of deposit and failed to properly exercise its right of setoff, we affirm the judgment.

The relevant facts are undisputed. In 1984, Shannon Poirier, Golden Poirier’s son, renewed a business…