Ford Motor Credit Co. v. First State Bank of Smithville

COLLEY, Justice.

Defendant/appellant Ford Credit appeals from an adverse judgment rendered in favor of plaintiff/appellee Bank in a bench trial of the issue of the priority of competing security interests held by the parties in the inventory of a failed Ford dealership in Smithville. We affirm.

The record shows that Jeb Fredrickson, following negotiations during the summer of 1977 with Ford Motor Company, obtained approval as a dealer with a franchise to sell Ford products under the corporate name, Jeb Fredrickson Ford-Mercury, Inc. (Fredrickson).

Fredrickson, on July 1, 1977, executed a floor…