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BATTLE CREEK STATE BANK v. PREUSKER

No. S-96-198.

571 N.W.2d 294 (1997)

253 Neb. 502

BATTLE CREEK STATE BANK, Appellee, v. Mart PREUSKER and Phyllis Preusker, Appellants.

Supreme Court of Nebraska.

December 12, 1997.

Attorney(s) appearing for the Case

James F. Brogan, Madison, for appellants.

Stan A. Emerson, of Sipple, Hansen, Emerson & Schumacher, Columbus, for appellee.

Robert J. Hallstrom, of Brandt, Horan, Hallstrom & Sedlacek, Nebraska City, for amicus curiae Nebraska Bankers Association, Inc.

WHITE, C.J., and CAPORALE, WRIGHT, CONNOLLY, GERRARD, STEPHAN, and McCORMACK, JJ.

CONNOLLY, Justice.

This appeal presents two principal issues: (1) Whom does 7 U.S.C. § 1631 (1994) of the federal Food Security Act (FSA) protect? (2) What effect does the FSA have, if any, on security interests under the Uniform Commercial Code (U.C.C.)? The appellants, Mart Preusker and Phyllis Preusker, as creditors of their daughter and son-in-law, received proceeds from the sale of fluid milk to a dairy cooperative...

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