Court dismissed a suit brought in this action against a credit union for discharging its President and CEO. In this case, Nevada Federal Credit Union held a regularly scheduled meeting and voted 5-2 not to renew the employment contract of Robert Street, its then President and CEO. After obtaining legal advice, a second meeting was […]

In this case, the Colorado Court of Appeals held that the credit union’s lien on a borrower’s mobile home was superior to a mortgage held on the real estate upon which the mobile home was permanently built. Here, ENT Federal Credit Union (hereinafter “ENT”) granted a loan to Alice Ripley secured by her mobile home. The […]

Credit Union Violates Truth in Lending Act, but Court denies co-borrowers Right of Rescission of mortgage, as mortgage was not on co-debtors’ primary residence.    Here, the Coxes (Borrowers) were indebted to Knox County School Employees Credit Union. Debtors wanted to borrow additional funds from the credit union to be secured by their residence.   Debtors did […]

Here, the debtors proposed a Chapter 13 reorganization plan that included a $150.00 voluntary charitable payment to a church per month and another $30.95 per month for cable television. Fort Eustis Federal Credit Union timely objected to the debtors’ payments above. However, the Bankruptcy Court confirmed the debtors’ plan over the credit union’s objections. The credit union […]

Here,  the court denied confirmation of a Chapter 13 bankruptcy repayment plan when the unsecured creditors would have received more under a Chapter 7 bankruptcy. The court found that the best interest of creditors would not be supported in this Chapter 13 case, since those creditors would receive greater repayment in a Chapter 7 case.  […]

The Omnibus Budget Reconciliation Act includes a section requiring certain financial institutions, including credit unions, to report discharges of indebtedness of $600 or more during any calendar year to the IRS on Form 1099-C, entitled “Cancellation of Debt”. The IRS has published regulations implementing the law requiring credit unions and other financial institutions to report annually on […]

In this case, a California Appellate Panel rendered an opinion favoring creditors who refinance a debt in reliance upon a fraudulent financing statement, even though no new money is advanced. In this case, debtors had an existing loan with the bank and were unable to make the agreed payments. Debtors requested an extension of time to […]

Here, a jury verdict was entered in favor of Barbara Carle (Carle), a former manager of McChord Credit Union, for wrongful discharge based upon age discrimination. The jury awarded the former manager $100,000.00 for age discrimination, another $18,000.00 for negligent infliction of mental distress and more than $47,000.00 in attorney fees. Barbara Carle was a […]

In this case, Randy Bocian, doing business as Zurich Ltd., deposited a $28,800 check payable to his business into his account at First of America Bank. The bank immediately honored the deposit and credited the account without waiting for the check to clear the issuing bank. In fact, First of America paid outstanding checks for […]