Bank of North America v. Kruger

EVANS, Justice.

The basic question in this casé is whether the contractual and statutory liens asserted by a landlord in the personal property of his lessee should be accorded priority over the perfected security interest of a lending bank in the same property.

On June 23, 1967, the landlord Morris Kruger leased certain premises to National Motors, Inc., the lessee’s performance being individually guaranteed by its president, Harry Hartley. The lease contained a provision expressly granting a lien to the lessor on all of the lessee’s personal property to secure the lessee’s performance under…