United States Fidelity & Guaranty Co. v. First State Bank

The opinion of the court was delivered by

Foth, C.:

This case represents another round in the perennial struggle for priority between the surety on the performance bond of a defaulting building contractor and a bank which has advanced money to the contractor on the faith of an assignment of the contract proceeds. The new element here is the presence of the Uniform Commercial Code (UCC), K. S. A. Ch. 84. The primary question we are called upon to decide is the effect, if any, the UCC has on the priorities which would otherwise obtain — although there is some preliminary dispute as to just what…