Brandon - 3/20/2019 08:23

All of our notes are demand notes. I have never seen our bank, nor any with which I have done business or otherwise had close association exercise the demand clause unless some sort of event of default was present.

Fortunately for me, the 1980's were before my working career, and my farming family was fortunate enough to not need to borrow money during that time. Banks and bank employees/ owners are just like farmers or any other business -- there are good ones and bad ones. And just like farming, the bad ones don't stay in business long, at least in the same fashion in which they've done business in the past.

I don't know a fraction of a percent of the story with this sale barn situation, and I don't know the legalities of being able to offset those particular funds to apply to debt. I do know that it would not go over very well, and if it sticks, that bank will likely not have much positive following in that community and likely fail as a result. That is if the story is even accurate.

To quantify my situation -- I sit on both sides of the desk. I farm and owe a heck of a lot of money.

Is there a chance the bank grabbed those funds before a crooked owner took them, in an effort to make sure the sellers of livestock get their money, either directly from the bank or through a planned court process? Very likely those livestock growers who sold to the barn that day are also customers of that same bank, and very likely many of those people have debt with that bank. Wouldn't it be prudent to insure those people get paid?