Valley National Bank v. Porter

During 1975 and 1976 plaintiff-appellant, Valley National Bank, made loans in excess of $100,000 to Van Dyck Heating and Air Conditioning, Inc., a corporation owned by Shirley Horn and operated by her husband, Kenneth Horn. The bank obtained and perfected a security interest in all accounts, contract rights and chattel paper, including third-party checks payable to the corporation. Thereafter, Van Dyck’s business gradually declined and the bank’s loan was declared in default in April of 1976. Nevertheless, appellant bank allowed Van Dyck to continue operating as a separate commercial entity…