Farmers State Bank v. United Central Bank of Des Moines

SCHULTZ, Justice.

This appeal arises out of a dispute between banks over the renewal of a loan participation agreement. Farmers State Bank of Lakeview (Farmers) used United Central Bank of Des Moines, now named First Interstate Bank of Des Moines, N.A. (Interstate) as a correspondent bank and also sold it loan participations. 1 J.E.M.S., Inc., a one-bank holding corporation, owns over eighty percent of Farmers’ stock. In 1982, Farmers loaned money to a farmer, evidenced by three notes, and Interstate purchased loan participations in the notes. After the notes were due in 1983, Farmers…