Cullen Frost Bank v. Dallas Sportswear Co.

OPINION

RAY, Justice.

This case involves the question of whether Cullen Frost Bank had a duty to notify Dallas Sportswear Company, Inc. of its intended disposition of Dallas Sportswear’s collateral and whether Cullen Frost had a duty to dispose of the collateral in a commercially reasonable manner. Cullen Frost, held five promissory notes from Dallas Sportswear. A security agreement secured the loans and Dallas Sportswear’s accounts receivable were part of the collateral pledged. Two of the notes were not timely paid and by letter dated March 11, 1981 Cullen Frost properly declared the entire…