McILROY BANK v. FIRST NATIONAL BANK OF FAYETTEVILLE

No. 5-5897.

480 S.W.2d 127 (1972)

McILROY BANK, Appellant, v. FIRST NATIONAL BANK OF FAYETTEVILLE, Appellee.

Supreme Court of Arkansas.

May 15, 1972.


Attorney(s) appearing for the Case

Ball & Gallman, Fayetteville, for appellant.

Paul Jameson, Fayetteville, for appellee.


BROWN, Justice.

This is a contest between two banks to determine which, if either, is entitled to the proceeds of a judgment taken in favor of a creditor who was indebted to both banks. The appeal is taken from a finding by the chancellor that appellee had priority under the Uniform Commercial Code.

In September 1964 Mr. Carney became indebted to Mr. Watson and executed a note for $2,500. Watson delivered the note to appellee, First National Bank, as one of...

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