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KANSAS STATE BANK v. CITIZENS BANK

No. 83-1315.

737 F.2d 1490 (1984)

The KANSAS STATE BANK IN HOLTON, Appellee, v. The CITIZENS BANK OF WINDSOR, J.W. Simmons, and William E. Simmons, Trustee of the Jean Simmons Trust Estate, Appellants.

United States Court of Appeals, Eighth Circuit.

Decided June 29, 1984.

Rehearing and Rehearing Denied July 31, 1984.

Attorney(s) appearing for the Case

Thomas W. Wagstaff, Penni L. Johnson, Blackwell, Sanders, Matheny, Weary & Lombardi, Kansas City, Mo., for appellants The Citizens Bank of Windsor, J.W. Simmons and William E. Simmons, Trustee of the Jean Simmons Trust Estate.

William L. Turner, Stephen B. Sutton, Gage & Tucker, Kansas City, Mo., for appellee.

Before McMILLIAN, JOHN R. GIBSON and BOWMAN, Circuit Judges.

Rehearing and Rehearing En Banc Denied July 31, 1984.

JOHN R. GIBSON, Circuit Judge.

Appellee The Kansas State Bank in Holton purchased a $200,000 loan participation certificate from appellant The Citizens Bank of Windsor. The borrower, Oldham's Farm Sausage, Inc., subsequently went out of business. Holton Bank lost the entire $200,000 when its priority in collateral securing the loan proved to be junior to that of other lenders. Holton Bank then brought this...

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