Hamilton State Bank v. Nelson

Blackwell, Justice.

Jimmy R. Nelson and Dolph Nelson, Jr. (the “Nelsons”) are members of Nelson and Nelson Building Acct., LLC (the “LLC”) and shareholders of Nelson’s Appliances and Home Furnishings, Inc. (the “Corporation”). The Nelsons executed promissory notes in favor of Hamilton State Bank (the “Bank”), and to secure the repayment of those notes, the Bank obtained a security interest in real property owned by the LLC and the Corporation, upon which the Nelsons operated an appliance and furniture store. The Bank also obtained a security interest in the store’s accounts receivable,…