UNITED STATES OF AMERICA V. MEADORS 753 F.2d 590 (7th Cir. 1985) CASE BRIEF

UNITED STATES OF AMERICA V. MEADORS

753 F.2d 590 (7th Cir. 1985)

NATURE OF THE CASE: Meadors (D) appealed a summary judgment in favor of United States (P) in P's action to collect from D as a guarantor on her husband's loan.

FACTS: MJD applied for a loan to pay off debts and to provide working capital. The loan was subject to a guaranty by the SBA. The SBA approved the request for a 56% guaranty of the $281,000 loan, but required the principals Melton Meadors, Jay Judd and Harold Ducote and Ducote's wife Marie to sign a guaranty. After considering the loan, the SBA chose to have Meadors, Judd, Ducote and Ducote's wife sign the required guaranty. On April 2, 1977, Melton Meadors and D were married. At the April 19 closing the three principals and their wives were all present. Although the SBA had provided places on its Form 148 for the signatures only of Meadors, Judd, Ducote, & Ducote's wife, and although no one from the SBA was present to request additional signatures, all six -- the three principals and their wives -- signed the guaranty form. Neither the SBA nor the Bank required D to sign any document as a prerequisite for disbursing loan proceeds. These facts are not disputed by either side. MJD defaulted. An action was instituted to collect the deficiency from the guarantors, including D. D raised several defenses, including lack of consideration and impairment of collateral. P filed a motion for summary judgment which was granted. D appealed.

ISSUE:

RULE OF LAW:

HOLDING AND DECISION:

LEGAL ANALYSIS:

Get free access to the entire content for Mac, PC or Online

for 2-3 days and free samples of all kinds of products.

https://bsmsphd.com

© 2007-2016 Abn Study Partner