STATE OF MINNESOTA

IN COURT OF APPEALS

C0-02-2002

First Construction Credit, Inc.,

Respondent,

vs.

Simonson Lumber of Waite Park, Inc.,

Appellant.

Filed June 10, 2003

Affirmed

Gordon W. Shumaker, Judge

Crow Wing County District Court

File No. CX01781

Brad A. Sinclair, Serkland Law Firm, 10 Roberts Street, P.O. Box 6017, Fargo, ND 58108-6017 (for respondent)

David J. Meyers, Gerald W. Von Korff, Rinke-Noonan, 700 Wells Fargo Center, P.O. Box 1497, St. Cloud, MN 56302-1497 (for appellant)

Considered and decided by Toussiant, Chief Judge, Klaphake, Judge, and Shumaker, Judge.

S Y L L A B U S

A recorded real estate purchase agreement that contains a non-merger clause is not sufficient to create a security interest in the property unless it also contains an express intention to do so.

O P I N I O N

GORDON W. SHUMAKER, Judge

Appellant Simonson Lumber of Waite Park, Inc. (Simonson Lumber) foreclosed a mortgage and bought the property at the foreclosure sale.