Crystal State Bank v. Columbia Heights State Bank

Harold W. Schultz, Justice. *

This is an appeal from a judgment of the Anoka County Municipal Court. The case was tried without a jury upon stipulated facts. The issue presented on appeal is whether the sale of an automobile to the controlling shareholder of an automobile dealership is a sale “in the ordinary course of business” within the meaning of a security agreement creating a security interest in the inventory of the dealership. The trial court held that it is and we affirm.

Jerry C. Collins was the president and principal shareholder of Northtown Motor Sports, Inc. (NMS), a corporation…