Guaranty Bank & Trust Co. v. Agrex, Inc.

After David Walker received a loan from Guaranty to produce his crops of soybeans and corn, Guaranty took a production-money security interest in Walker’s crops, and Walker later delivered these crops to Agrex d/b/a FGDI under a series of contracts. Because Walker failed to fulfill all of his contracts with FGDI, FGDI applied a set-off to the amount it owed Walker for his crops in order to cover its losses arising from the undelivered crops. Guaranty filed suit against FGDI seeking to recover the entire amount due Walker under his contracts with FGDI. The district court granted summary judgment to Guaranty. The court affirmed the judgment because FGDI took Walker’s crops subject to Guaranty’s security interest under the Food Security Act of 1985, 7 U.S.C. 1621, 1631. View "Guaranty Bank & Trust Co. v. Agrex, Inc." on Justia Law