Production Credit Ass'n of the Midlands v. Farm & Town Industries, Inc.

ANDREASEN, Justice.

This appeal involves the determination of the validity of and the priority of competing creditors’ liens on a debtor’s 1991 and 1992 com crops and proceeds. The district court granted partial summary judgment in favor of the institutional lender on both claims against a grain dealer. We affirm in part and reverse in part.

I. Background and Factual Proceedings.

On August 10, 1990, McGraw Farms, a partnership consisting of Dale McGraw and Verle McGraw, along with Dorothy McGraw and Roxanne McGraw (collectively McGraw) entered into a loan restructure agreement with Production…