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WEGNER v. GRUNEWALDT

No. 86-5224.

821 F.2d 1317 (1987)

Thomas E. WEGNER, Appellee, v. Cecelia GRUNEWALDT, Trustee; Valley National Bank, a National Banking Corporation; and The South Dakota Department of Revenue, Appellants.

United States Court of Appeals, Eighth Circuit.

Decided June 29, 1987.

Rehearing Denied July 30, 1987.

Attorney(s) appearing for the Case

Edward J. Leahy, Sioux Falls, S.D., for appellants.

Michael B. Crew, Sioux Falls, S.D., for appellee.

Before LAY, Chief Judge, JOHN R. GIBSON, Circuit Judge, and HANSON, Senior District Judge.

JOHN R. GIBSON, Circuit Judge.

Valley National Bank appeals from the district court's1 judgment reversing the bankruptcy court's order and declaring Thomas E. Wegner's security interest superior to Valley National's security interest in a liquor license that BLT, Ltd., initially owned and later sold to BLT II, Ltd. Valley National argues that the district court erroneously held that Wegner did not relinquish his security interest under...

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