Security State Bank v. Schultz

VANDE WALLE, Justice.

John E. Schultz appealed from a summary judgment in favor of third-party defend ants Robert Streeter and Jerome Hageman. We reverse the summary judgment and remand the case for a trial on the issues.

On July 18, 1979, Schultz borrowed $38,-000 from Security State Bank of Wishek. Schultz owned the Wishek Cheese Company, Inc., and the money was placed in that company’s account. The note was executed by Schultz in his personal capacity because the Bank would not extend additional credit to the company. The obligation was carried on the books of the company and payments on the…