In this case, Wachovia Bank of North Carolina held a mortgage on environmentally contaminated property. The mortgage went into default and the bank foreclosed on the property, purchasing the property at the sheriff’s sale. The bank then sold the property to purchasers who later sued the bank since the property was contaminated. The Comprehensive Environmental […]
Archive for National
Defective Notary: Mortgage Void
Here, the U.S. Bankruptcy Court ruled that a creditor’s recorded mortgage was invalid simply because the notary’s acknowledgement did not recite who appeared before the notary and acknowledged execution of the mortgage. In this case, debtors borrowed more than $148,000 from Calumet National Bank and signed a mortgage on their real estate securing the debt. […]
Holder in Due Course – Checks
In Cincinnati Central Credit Union vs. Yuvonne Goss et al., this Ohio court noted that this case presents a common occurrence in the world of banking and one which the courts can resolve equitably. Here, one Terrence Fitzgerald made payable his check for $4,000 to New Look Auto Trim and Upholstery and delivered it to […]
Attorney Fees Assesses Against Bankrupt Debtor
This Bankruptcy Court held that the debtor must pay creditor’s attorney fees after the creditor prevailed in a complaint for nondischargeability. A Chapter 7 bankruptcy frees the relieves the debtor from all prior personal obligations. However, the policy “underlying bankruptcy law entitles only honest debtors to the fresh start” after discharge. If a debt results from […]
Automatic Stay Violation: Costs Assessed Against Credit Union
Credit Union held in Contempt of Court for failure to stop automatic payroll deductions upon debtor filing for bankruptcy. The debtor was on automatic payroll deduction to MFA Employees Credit Union for an unsecured loan. Debtor filed a Chapter 7 Bankruptcy but debtor did not cancel the payroll deductions for the credit union loan payments. The credit […]
Right to Cancel – Truth-In-Lending Violation
Defective Notice of Right to Cancel results in Truth in Lending Violation and extends borrowers right to rescind. Here, New Maine National Bank granted a loan to the debtors secured by debtors’ residence. At the closing of the loan, the loan officer supplied the debtors with a “Notice of Right to Cancel” (hereinafter “Notice”). Pursuant to the […]
Cashier Checks: Bank Liable to Credit Union
Check-kiting scheme results in liability of Bank to Credit Union. Here, Clark Crapps was a member of First Railroad Community Credit Union and also held accounts at Columbia County Bank [Columbia] and First Community Federal Credit Union [Credit Union]. Crapps was engaged in an elaborate check-kiting scheme for which neither Columbia nor the Credit Union was aware. Columbia […]
Board Member Loses Suit Against Credit Union
In this case, John Heller was a member of the Board of Directors of CACL Federal Credit Union. CUMIS Insurance Society informed CACL that the bond for Heller had been revoked. Despite the loss of his bond and inability to find a replacement bond (as required by the NCUA), Heller ran for reelection […]
Cram-Down Plan Amendment Denied
Debtors attempt to cram-down secured loan to “unsecured” status after debtor’s Chapter 13 Confirmation Hearing was denied by Court. Here, debtor owed a loan to creditor secured by one Mercury automobile. Debtor’s Chapter 13 repayment plan proposed to cram-down the obligation to the fair market value of the vehicle and repay creditor only $1,125, plus […]
Credit Union Taking Possession Must Evict Occupants
Following the Credit Union’s purchase of the house, two occupants residing in the house at the time of the purchase were given notice that if they did not voluntarily move from the premises, they would be evicted. Here, the residents did not move out, and a complaint for eviction was filed with the court. The court […]