State Bank of Rose Creek v. First Bank of Austin

OTIS, Justice.

This case involves competing claims to five non-negotiable certificates of deposit issued by Appellant First Bank of Austin (First Austin). First Austin appeals from the judgment of the district court, finding that its right to set-off was subject to a perfected security interest established by the State Bank of Rose Creek under Article 9 of the Uniform Commercial Code.

Between January and August of 1980 First Austin made a number of loans to Northland Door and Supply Company, Inc. The loans were guaranteed by Mitchell B. and Susan J. Christiansen up to the amount of $190,000.00.…