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STATE BANK OF ROSE CREEK v. FIRST STATE BANK

No. 81-1054.

320 N.W.2d 723 (1982)

STATE BANK OF ROSE CREEK, Respondent, v. FIRST BANK OF AUSTIN, Appellant.

Supreme Court of Minnesota.

June 18, 1982.

Attorney(s) appearing for the Case

Alderson, Ondov, Leonard & Sween, Austin, Dorsey, Windhorst, Hannaford, Whitney & Halladay, J. Jackson and Joseph H. Anderson, Minneapolis, for appellant.

Baudler, Baudler & Maus and Robert M. Maus, Austin, for respondent.

Considered and decided by the court en banc without oral argument.

OTIS, Justice.

This case involves competing claims to five non-negotiable certificates of deposit issued by Appellant First Bank of Austin (First Austin). First Austin appeals from the judgment of the district court, finding that its right to set-off was subject to a perfected security interest established by the State Bank of Rose Creek under Article 9 of the Uniform Commercial Code.

Between January and August of 1980 First Austin made a number of loans to...

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