SCHMIDT v. McILROY BANK & TRUST

No. 91-116.

811 S.W.2d 281 (1991)

306 Ark. 28

Paul A. SCHMIDT, Pauline B. Schmidt, Paul G. Schmidt, Appellants, v. McILROY BANK & TRUST, Appellee.

Supreme Court of Arkansas.

June 10, 1991.


Attorney(s) appearing for the Case

Steven D. Tennant, Farmington, C. Thomas Pearson, Jr., Fayetteville, for appellants.

Robert R. Estes, Fayetteville, for appellee.


DUDLEY, Justice.

The appellants, Paul A. Schmidt, Pauline B. Schmidt, and Paul G. Schmidt, were the sole stockholders in the Aero Corporation, a family farming corporation. The corporation held its checking accounts in, and borrowed extensively from, the appellee Mcllroy Bank and Trust. The notes, security agreements, and mortgage involved in this dispute were executed in the corporation name. After the corporation overdrew one of its checking accounts, the bank declared...

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