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Hutchinson National Bank v. Brown
Kansas Court of Appeals
753 P.2d 1299 (1988)
Harry Brown bought a certificate of deposit (CD) from Hutchinson National Bank (plaintiff) issued to him and his wife Ida Brown (defendant) as joint tenants. A few years later, he helped his grandson get a $15,000 loan by offering his certificate of deposit as security for the loan. Harry died in 1985, and about a year later, his grandson declared bankruptcy. The bank then filed this suit, seeking to satisfy the loan to Harry by applying proceeds from the certificate of deposit (CD). The district court held that the pledge of the CD did not sever the joint tenancy and that when Harry died, the CD passed to Ida free and clear of any lien in favor of the bank.
Rule of Law
Holding and Reasoning (Rulon, J.)
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