Borrower moving collateral to another State dissolved security interest when creditor did not file a financing statement in Georgia within four months after the debtor moved to that state. Facts: 1. Debtor, Specialty Contracting and Supply Company, granted a security interest in its equipment, among other items of collateral, to one Richard Fraley; Fraley was an officer […]

A creditor who improperly identified its secured interest on a vehicle title as the “owner” instead of a “lienholder” was sufficient to perfect its security interest in the motor vehicle. In this case, the creditor intended to place a lien on the debtor’s vehicle, however, creditor mistakenly designated itself on the certificate of title as the […]

Here, the Court held that the Credit Union’s mortgage on a member’s real estate, inadvertently marked as “cancelled” when the loan was not paid, was still enforceable. This mortgage, sold by the Credit Union to the Federal Home Loan Mortgage Corp., was accidentally stamped as “cancelled” or paid. The mortgage was foreclosed upon and the […]

If collateral is not insured and the debtor files bankruptcy, proper procedure is to first lift the Bankruptcy Stay and then repossess collateral. Here, the court held that a creditor is entitled to lifting the Bankruptcy automatic stay if the secured collateral is not insured. An automobile in question in this case was not insured. […]

Security State Bank of Hamilton issued a loan of nearly $17,000 to Jerry and Henrietta Marshall in exchange for the Marshall’s pledge of a security interest in the debtors’ new car. Debtors signed the promissory note and pledge of security. The bank’s personnel, however, failed to identify the pledged security on the Truth-in-Lending disclosure. Debtors’ […]

Facts: 1.  Debtor, Specialty Contracting and Supply Company, granted a security interest in its equipment, among other items of collateral, to one Richard Fraley; Fraley was an officer of Specialty Contracting and he filed a financing statement in Texas where Specialty Contracting operated at that time. Two years later, the debtor’s business moved to Georgia. Chronologically, the […]

The trial court held that the credit union’s actions, as well as that of the credit union attorney, violated the bankruptcy code’s automatic stay. The trial court ordered the credit union and its attorney to pay $15,000 in punitive damages. Here, debtor purchased a kit to transform his 1970 Volkswagen chassis into a 1937 Jaguar […]

Court held creditor must pay debtor for creditors wrongful repossession. In this case, the debtor pledged his vehicle as collateral on a loan and the loan was in default due to late payments. The creditor, Mercedes-Benz Credit Corp., repossessed debtor’s vehicle, however, the court found the repossession constituted a wrongful repossession, or “conversion.” The court […]

General Motors Acceptance Corporation issued a loan to debtor secured by debtor’s new automobile. The debtor purchased disability insurance through GMAC which provided that payments on the loan would be made to GMAC by the insurance company if the debtor became disabled. Debtor did, indeed, become disabled when she suffered a stroke. A claim was […]

Here, the debtor, a former police officer, applied for and was approved for a loan from Hartford Police Federal Credit Union for $150,000. The debt was intended to be utilized to pay off an existing second mortgage on debtor’s residence and for the purchase of a balloon business. At the closing on the credit union’s […]