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STATE v. MERCER

No. 90-1146.

470 N.W.2d 67 (1991)

STATE of Iowa, Appellant, v. Sherrie L. MERCER and Ernest R. Mercer, Appellees.

Court of Appeals of Iowa.

April 2, 1991.

Attorney(s) appearing for the Case

Bonnie J. Campbell, Atty. Gen., Mark Joel Zbieroski, Asst. Atty. Gen., Ronald D. Bonnett, County Atty., and Arlen F. Hughes, Special Prosecutor, for appellant.

Jon H. Johnson of Johnson & Graeser, P.C., Sidney, for appellees.

Heard by OXBERGER, C.J., and SCHLEGEL and HABHAB, JJ.

OXBERGER, Chief Judge.

Ernest and Sherrie Mercer, husband and wife, operated a grocery store in Bedford, Iowa, from 1987 to 1989. To finance the purchase of fixtures and equipment for the store, the Mercers borrowed over $20,000 from each of two persons, Howard Coon and S.K. Mendenhall. Coon and Mendenhall held separate security interests in the fixtures and equipment.

In 1989 the Mercers encountered financial difficulties and closed the store. The Mercers...

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