Walker v. Fendrich Industries, Inc.

McMurray, Judge.

On May 29, 1974, Colonial Elastic Company, a corporation, purchased certain textile equipment from Fendrich Industries, Inc. (that is, from Hickory Industries, one of its divisions). D. A. Walker was the president of Colonial and its sole shareholder. Colonial gave its note dated May 29, 1974, in the amount of $51,000 as payment of the balance of the purchase price. It also executed a security agreement on the same date, *878granting Fendrich a purchase money security interest in the machinery and parts purchased.

In addition to the above it required Walker as president of Colonial…