Bonded Elevator, Inc. v. First National Bank of Louisville

VANCE, Justice.

The questions presented by this appeal are (1) whether summary judgment was properly entered against Bonded Elevator, Inc., in favor of First National Bank of Louisville, and (2) whether the Bank is precluded from seeking satisfaction of the judgment from Bonded to the extent that Bank has received payment thereon from a third party under an unusual loan-receipt transaction.

Bonded Elevator, Inc., a Kentucky corporation, engaged in a grain elevator business in Madisonville and Calvert City, Kentucky. It sought a line of credit from First National Bank of Louisville.

To secure the…