Security Pacific Bank, N.A. v. Haines Terminal & Highway Co.

OPINION

MOORE, Chief Justice.

INTRODUCTION

In this commercial transaction dispute, Security Pacific Bank, a secured creditor of Chilkoot Lumber Company, appeals an order issued by the superior court allowing Haines Terminal and Highway Company, an unsecured creditor of Chilkoot Lumber, to recover approximately $23,000 from a bond posted by Security Pacific. The superior court based this decision on its finding that Security Pacific had improperly allowed Weyer-haeuser Corporation to receive part of the proceeds from the sale of collateral as an offset to prior debts owed by Chilkoot Lumber to…