GESA Federal Credit Union v. Mutual Life Insurance

Hopkins, J. *

— In December 1978 El Rancho Reata, Inc. (ERR), executed a note and mortgage on farmland located in Benton County to Mutual Life Insurance Company of New York (MONY) to secure a $700,000 loan. At the time the mortgage was executed, irrigation equipment leased from Trans Union Leasing Corporation to Columbia Pacific Leasing, Inc., was located on the farmland. The equipment lease was for a term of 10 years, ending December 20, 1987. ERR also gave to MONY a security interest in the irrigation equipment cosigned by Columbia Pacific. The mortgage also provided that a Badger Mountain…