Larson v. Vermillion State Bank

OPINION

SHORT, Judge.

' This dispute arises from a demand note issued by Dennis D. Larson (Larson) and Margaret A. Larson to the Vermillion State Bank (bank). After the bank called the note due, the Larsons filed suit, alleging the bank had violated the loan agreement by calling the note in bad faith. The Larsons appeal from the trial court’s dismissal of this action for failure to state a claim.

FACTS

To purchase inventory for their farming equipment business, the Larsons obtained a $50,000 line of credit from the bank. By its terms, the note stated the loan was payable on demand. As collateral,…