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UNITED STATES FIDELITY & GUARANTY CO. v. FIRST ST. BANK

No. 46,189

208 Kan. 738 (1972)

494 P.2d 1149

UNITED STATES FIDELITY AND GUARANTY COMPANY, Appellant, v. FIRST STATE BANK OF SALINA, Appellee, and L.R. FOY CONSTRUCTION CO., INC.

Supreme Court of Kansas.

Opinion filed March 4, 1972.

Attorney(s) appearing for the Case

Larry Withers, of Kahrs, Nelson, Fanning, Hite and Kellogg of Wichita, argued the cause, and Roger Sherwood, of the same firm, was with him on the brief for the appellant.

James T. Graves, of Clark, Mize, Graves, Linville and Miller, Chartered of Salina, argued the cause and was on the brief for the appellee.

The opinion of the court was delivered by

FOTH, C.:

This case represents another round in the perennial struggle for priority between the surety on the performance bond of a defaulting building contractor and a bank which has advanced money to the contractor on the faith of an assignment of the contract proceeds. The new element here is the presence of the Uniform Commercial Code (UCC), K.S.A. Ch. 84. The primary...

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