Herringer v. Mercantile Bank of Jonesboro

Steele Hays, Justice.

This case involves a dispute between a landlord and a bank as to whether a landlord’s lien or a bank’s purchase money security interest has priority. The trial court held for the bank and we sustain that holding.

John Herringer, appellant, owns commercial property in Jonesboro. On March 15, 1990, he leased the property to Mike Crosby. The lease was to begin on April 15, 1990, but pursuant to an amendment to the lease, Crosby took possession of the premises prior to that date to begin work on a restaurant he planned to operate on the leased premises. Crosby began work on…