First National Bank in Lenox v. Creston Livestock Auction, Inc.

HARRIS, Justice.

The controlling question is whether a bank’s endorsement on a cheek affected the bank’s status as a holder in due course. We agree with the trial court’s determination that it did not.

Jerry Parker, a Union County farmer, had dealings with two banks. He first obtained a loan from the First National Bank in Lenox, Iowa (Lenox Bank). Lenox Bank took a security interest in all of Parker’s livestock and livestock proceeds. Parker later obtained another loan from the First National Bank in Crestón (Cre-stón Bank) and that bank also took a security interest in Parker’s livestock and…