Opinion ID: 2670997
Heading Depth: 3
Heading Rank: 1

Heading: The Loans and UCC Filings

Text: Mr. Audet is the chairman, chief executive officer, and sole stockholder of Tri-State and TST. In June 2006, Aleritas (previously known as Brooke Credit Corporation (“BCC”)), loaned Tri-State $8,216,000 (Loan No. 5483). Mr. Audet guaranteed the loan. On the same day, Aleritas loaned Mr. Audet $436,000 (Loan No. 5484). Also on that day, other lenders agreed with Aleritas to purchase participating interests in the loans. Defendant First National Bank of Wamego (“FNBW”) purchased a participating interest of 8.52 percent in Loan No. 5483. Shortly thereafter, Aleritas filed a UCC financing statement in Kansas giving notice of its secured interest in Tri-State’s collateral. Aleritas also filed UCC financing statements in Pennsylvania and North Dakota giving notice of its secured interests in the collateral of Tri-State and Mr. Audet. In 2007, Mr. Audet pledged TST stock to secure his indebtedness to Aleritas. Aleritas filed UCC financing statement amendments adding TST as a debtor in Kansas, North Dakota, and Pennsylvania. Aleritas administered Loan Nos. 5483 and 5484 until mid-September 2008, when it experienced financial difficulties and discontinued normal business operations. It assigned FNBW the payment processing and loan administration duties for both loans. Aleritas advised Plaintiffs of FNBW’s duties but said it had not transferred or sold the loans. -2- In May, June, and July 2009, FNBW filed amendments to the UCC financing statements in Kansas, Pennsylvania, and North Dakota that purported to change the secured party of record from Aleritas to FNBW. The Kansas amendment listed BCC as the “[a]uthorizing party” and indicated that all collateral had been assigned to FNBW. Aplt. App., Vol. I at 31. The Pennsylvania amendments listed BCC dba Aleritas as the secured party of record that was “authorizing” the amendments and indicated a full assignment of collateral to FNBW. Id. at 24-25. The North Dakota amendments listed BCC as the secured party of record that was “authorizing” the amendments and indicated a full assignment of collateral to FNBW. Id. at 42-44.