Hill v. Farmers & Merchants Bank of Waterloo

The Farmers Merchants Bank of Waterloo brought this declaratory judgment action to have the circuit court determine the priority of conflicting security interests held by the Bank and Krystal Hill in certain logging equipment. The trial court held that the Bank had a valid and enforceable security interest and that Ms. Hill's security interest was void. Ms. Hill appealed.

In May 1988, Jeffery Sharp and Thurman Agee, doing business as T J Logging, approached Krystal Hill's father, Kenneth Dale Hill, and asked him for a loan to help them with their logging business. Ms. Hill's father declined to…