Production Credit Ass'n of Fairmont v. Martin County National Bank of Fairmont

OPINION

HUSPENI, Judge.

This case arises out of a dispute between two creditors regarding the status of payments made to the debtor Darrell Peterson pursuant to the United States Department of Agriculture’s Payment-in-Kind (PIK) program. The trial court granted summary judgment in favor of respondent Martin County National Bank (Bank) on the grounds that the Production Credit Association of Fairmont (PCA) did not have a security interest in the PIK payments made to the debtor. The PCA appeals. We reverse.

FACTS

The parties submit this appeal on stipulated facts as follows:

The PCA issued a loan to…