Northwestern National Bank of Minneapolis v. Shuster

WAHL, Justice.

This case involves two notes made by respondent Shuster and given to the McGlynn-Garmaker Company (M-G Co.) as Shuster’s alleged capital contributions to the Casper Development Company. The notes were used by M-G Co. as collateral to secure loans from appellant bank for operating capital for the Casper apartment development project and other M-G Co. projects. When M-G Co. went into bankruptcy the bank sued for collection on the notes as a holder and as a secured party with possession. The trial court found that the bank did not have any rights in either note, dismissed the…