Commercial mortgage foreclosure case against defendants, the mortgagor (loaned $11.62 million by Plaintiff) and 2 guarantors. Court entered judgment against guarantors. Plaintiff, as assignee of bank, successor interest to FDIC, solely as receiver for bank, issued citations to discover assets upon the guarantors. Plaintiff then filed motion for judgment against 2 corporate officers of guarantors for violating citations, and court granted the motion. Mortgage servicer filed petition to intervene, which court denied. Once the funds were transferred into guarantor's operating accounts, the funds "belonged" to them within meaning fo section 2-1402(f)(1) of Code of Civil Procedure, and transfer of those funds out of operating accounts was a violation of the citations. Under Rule 277(h), trial court had discretion as to nature of sanction to impose against corporate officers for violating the restraining provision and a finding of contempt was not a prerequisite to imposing a sanction. Trial court terminated citations after it entered judgment against corporate officers, which appellate court affirmed. Mortgage servicer's appeal is thus moot, as there is no longer a supplementary proceeding in which to intervene. (BRIDGES and ZENOFF, concurring.)
Illinois Appellate Court
Civil Court
Citation to Discover Assets