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

── In re the Receivership of United Prairie Bank, Respondent, vs. Molnau Trucking LLC, et al., Defendants, Granite Re, Inc.... ── Court: Supreme Court of Minnesota Date: July 16, 2025 Category: General Decision: Reversed and remanded 1. A performing construction surety need not show any mistake of fact to exercise its right of equitable subrogation. 2. A surety’s right to equitable subrogation is not a security interest subject to the Uniform Commercial Code (UCC), Minn. Stat. §§ 336.9-101 to 336.9-809 (2022), and the UCC’s first-in-time priority rule. Instead, through the doctrine of equitable subrogation, a performing surety has priority over a secured creditor as to contract funds created by the surety’s performance on its bond obligations. Reversed and remanded.