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BANK OF KANSAS v. HUTCHINSON HEALTH SERVICES, INC

No. 59,469

12 Kan. App. 2d 87 (1987)

735 P.2d 256

BANK OF KANSAS, Plaintiff-Appellant, v. HUTCHINSON HEALTH SERVICES, INC., a Kansas Corporation, and THE STATE OF KANSAS, DEPARTMENT OF SOCIAL AND REHABILITATION SERVICES, Defendants, and THE CENTRAL STATE BANK, TRUSTEE, Intervenor-Appellee, and THE STATE DEPARTMENT OF HUMAN RESOURCES OF KANSAS, Intervenor.

Court of Appeals of Kansas.

Opinion filed April 9, 1987.

Attorney(s) appearing for the Case

Dell Marie Shanahan Swearer and Dennis O. Smith, of Dennis O. Smith, Chartered, of Hutchinson, for plaintiff-appellant.

Thomas A. Dower and Patricia Rose Myers, of Reynolds, Peirce, Forker, Suter, O'Neal & Myers, of Hutchinson, for intervenor-appellee.

Before MEYER, P.J., REES and PARKS, JJ.

Petition for review denied 241 Kan. 838 (1987).

MEYER, J.:

This is an appeal from the district court's determination that appellee's right of setoff had priority over appellant's perfected security interest in proceeds of the debtor's accounts receivable.

Appellant Bank of Kansas brought this action against Hutchinson Health Services, Inc., (hereinafter "Hutchinson Health Services" or "debtor") to collect funds due under several loans. The Bank of...

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