In re the Receivership of United Prairie Bank v. Molnau Trucking LLC, Granite Re, Inc....

Syllabus

This dispute arises from funds held by a receiver in a receivership action. Appellant Granite Re, Inc. (Granite) and defendants Molnau Trucking LLC, et al. (Molnau Trucking) executed a General Agreement of Indeminty, naming Molnau Trucking as bond principal on public works projects, which effectively communicated an intent to form a surety 1 relationship. Respondent United Prairie Bank (the bank) later lent Molnau Trucking $3,258,400, and they executed a security agreement that granted the bank a security interest in Molnau Trucking property as collateral. Molnau Trucking defaulted on the projects and Granite paid on the bonds. Molnau Trucking also defaulted on the bank's loan. Granite and the bank dispute who has the right to Molnau Trucking's bonded receivables. Granite appeals the district court's final judgment, arguing that the court should not have granted summary judgment to the bank. Because the bank secured its interest in Molnau Trucking's collateral before Granite's equitable subrogation claim attached, we affirm.