Appellate court protects guarantor in dispute over collateral proceeds
By Jeffrey D. Cavanaugh
Commercial Banking, Collections, and Bankruptcy,
November 2001
In an opinion issued in September, an Illinois appellate court concluded that a bank breached its obligation to a guarantor when the bank used proceeds from the sale of collateral to pay off an unsecured loan that was not covered by the guaranty.
Illinois Supreme Court overturns decision against mortgage lender
By Jeffrey D. Cavanaugh
Commercial Banking, Collections, and Bankruptcy,
November 2001
In Voyles v. Sandia Mortgage Corporation (2nd District; 1999), an Illinois appellate court ruled that a mortgage company ("Lender") could be held liable for refusing to accept mortgage payments when the amount of those payments was in dispute and for subsequently reporting negative credit information as a result of the Lender's refusal to accept the tendered payments.
Signed sales receipt can document purchase money security interest
By Jeffrey D. Cavanaugh
Commercial Banking, Collections, and Bankruptcy,
November 2001
An Illinois Appellate Court recently determined that a credit card sales receipt signed by the borrower can adequately document a purchase money security interest in the goods purchased.
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