In re the Receivership of United Prairie Bank, Respondent, vs. Molnau Trucking LLC, Defendants, Granite Re…

Summary

The court held that a construction surety that performs its payment-bond obligations may assert equitable subrogation without proving a mistake of fact. It further held that equitable subrogation is not a UCC security interest and that a performing surety has priority over a secured creditor as to contract funds generated by the surety’s performance. The court reversed and remanded for entry of judgment in favor of the surety and redistribution of the disputed funds.