Farmers Deposit Bank v. Ripato

STEPHENS, Chief Justice.

On April 28, 1981, Elmer and Betty Ripa-to executed two notes, one for $195,000 and another for $13,500, payable to Farmers Deposit Bank (Farmers). These notes were to cover the refinancing of the Ripatos’ farm supply business, “Rip’s Ag Center.” Farmers had agreed to advance a total of $55,000 for business expenses, the $13,500 *397note representing only the first drawdown. The notes were secured by the inventory of the business, proceeds thereof, the business real estate, certain vehicles, and the Ripatos’ residence, which covered over six and one-half acres. On June…