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TREASURE VALLEY BANK v. BUTCHER

No. 17763.

793 P.2d 206 (1990)

117 Idaho 974

TREASURE VALLEY BANK, Plaintiff-Counterdefendant-Respondent, v. Donald P. BUTCHER and Helen Butcher, Husband and Wife, Defendants, and Harmon H. Johnson and Elizabeth Johnson, Husband and Wife, Defendants-Counterclaimants-Appellants. Harmon H. JOHNSON and Elizabeth Johnson, Husband and Wife, Third-Party Plaintiffs-Appellants, v. David L. DYKSTRA and Jackie K. Dykstra, Husband and Wife, Third-Party Defendants.

Supreme Court of Idaho.

May 24, 1990.

Attorney(s) appearing for the Case

Hamilton, Clark, Michaelson & Drescher, Nampa, Idaho, for defendants-counterclaimants-appellants. Mark L. Clark, argued.

Uranga & Uranga, Boise, Idaho, for plaintiff-counterdefendant-respondent. Louis L. Uranga, argued.

McDEVITT, Justice.

This case arose out of a partnership buy out in which the buying partner issued a promissory note with a deed of trust to property held by the partnership. The issues involved pertain to a partner's conveyance of an equitable interest in real property owned by the partnership, the effect such conveyance has on a mortgagee of the property and the effect actual knowledge of a prior interest has on a subsequent encumbrancer. The trial court held that...

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