FARMERS STATE BANK SOMONAUK v. National Bank of Earlville

Plaintiff, Farmers State Bank of Somonauk, initiated an action against defendant, First State Bank of Earlville, for conversion of a certain check, alleging that it represented proceeds of collateral in which plaintiff had a perfected security interest. The trial court granted defendant’s motion for summary judgment. Plaintiff appeals and we affirm.

In November 1986, plaintiff entered into two loan and security agreements with a local farmer, Harry Erickson, pursuant to which plaintiff lent Erickson $239,275.70. As collateral, plaintiff was assigned a blanket security interest which included…