In Re Big River Grain, Inc., Debtor. Anderson Land Company v. Small Business Administration
Opinion
Opinion
The sole issue on this appeal is the validity of the certificate of acknowledgment on a quitclaim deed. We conclude that the acknowledgment substantially complies with Idaho law and that the recorded deed constituted constructive notice to third parties subsequently acquiring an interest in the land conveyed.
Big River Grain, Inc. is a closely held Idaho corporation in which Dave and Connie Walker are controlling shareholders. Dave Walker was president of Big River Grain during the transactions involved in this case. Appellant, Anderson Land Co., is a Montana corporation.
On July 13, 1980, Big River Grain executed a promissory note for approximately $188,000 to cover an indebtedness due Anderson Land Co., together with an assignment of a contract for the purchase of approximately 34 acres of land, and a quitclaim deed to the same land. Both the contract and deed were recorded on July 17, 1980.
On July 29, 1980, the Small Business Administration (SBA) loaned Big River Grain $382,900 and to secure the loan received a mortgage on various properties, including the 34 acres conveyed to Anderson. SBA’s mortgage was recorded on August 6, 1980.