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Commercial Law Keyed to Whaley
Farm Credit Bank of St. Paul v. F&A Dairy
Citation:
165 Wis. 2d 360, 477 N.W.2d 357 (1991)Facts
Farm Credit Bank of St. Paul held a perfected security interest in all of Clover Hill Dairy’s assets, including milk produced by the dairy. When Clover Hill began selling milk to F&A Dairy, Farm Credit Bank did not provide direct notice to F&A of its security interest as required by the Food Security Act. Wisconsin had not established a central filing system for security interests in farm products at the time of the transactions. When Clover Hill defaulted on its loan, Farm Credit Bank sued F&A Dairy for conversion, claiming that F&A had purchased milk subject to Farm Credit’s security interest. F&A Dairy argued that it took the milk free of the security interest under the Food Security Act because it had not received proper notice.
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