First State Bank, Belmond v. Kalkwarf

HARRIS, Justice.

A mortgage foreclosure proceeding became a priority dispute between a bank lender and a judgment creditor of the borrower. The bank appeals and the judgment creditor cross-appeals from the trial court’s resolution of the dispute. We affirm on both appeals.

The crucial background facts were carefully detailed by the trial court in its ruling. In the following paragraphs, with minor editorial changes, we adopt those findings as our own.

Loren and Alberta Kalkwarf, husband and wife, are farmers. The First State Bank of Belmond (the bank) is a bank in a small rural community. Loren…