Legal News for Credit Union Managers Since 1990

Archive for National


11
Jan
2021

Statement of Financial Affairs: Discharge Denied

 Here, debtors failed to keep adequate records of their finances, and consequently the court denied their discharge. The debtors’ Statement of Financial Affairs indicated that they were principals in nine corporations. Some of the corporations were inactive, however, debtor, Mr. Vetri testified that he was unable to locate any of the business records of the […]

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08
Jan
2021

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 […]

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07
Jan
2021

Reasonable Reliance on Debtor’s Loan Application

Debtor submitted a materially false loan application causing financial loss to the creditor, but the Court found no “reasonable reliance” by the creditor on the loan application and discharged the debt in bankruptcy. Here, the court held that creditor ITT Financial Services (ITT) had not reasonably relied on the debtor’s false loan application and the court discharged the […]

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06
Jan
2021

$100,000.00 Award to Employee

Here, the court addressed the issue as to whether a job applicant was discriminated against due to the applicant’s obesity. In this case, the job applicant applied for a position with the employer and was rejected due to her obese weight.   The medical profession considers a person morbidly obese if the individual weighs either more […]

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02
Jan
2021

Sale of Credit Union Collateral: “AS IS”

In the case of David Scoggin vs. Listerhill Employees Credit Union, the Alabama Supreme Court upheld a lower court ruling in favor of the credit union. Here, the credit union repossessed a member’s Dodge Dynasty and sold the vehicle at auction for the highest bid of $5,000. The vehicle’s odometer displayed mileage of 18,334 miles, […]

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31
Dec
2020

Mobile Home Lien Superior to Real Estate Mortgage

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 […]

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30
Dec
2020

Deposit Set-Off Not Allowed

This case held that a credit union’s “freeze” on a bankrupt members’ account violates the bankruptcy court’s automatic stay if the member’s loan secured by the deposit is not in default. In this case, the debtors previously borrowed funds from the credit union and granted to the credit union a security interest in their deposits […]

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30
Dec
2020

Credit Union Board-Member Suit Dismissed

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 […]

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29
Dec
2020

Collateral: Embezzled Funds

Credit Union Board Member and Manager Pledged Embezzled Funds as collateral for Credit Union loan.    Rebecca Caldwell was the manager, secretary and treasurer of Avondale Mills Bevelle Employees Federal Credit Union. She also served on the credit union’s Board of Directors. Caldwell took a blank Certificate of Deposit from the credit union and directed […]

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28
Dec
2020

Negligent Representation: Credit Union Liability – Credit Life Insurance

A Supreme Court of Rhode Island opinion held a credit union liable to its member for the credit union’s negligent misrepresentation to the member regarding life insurance on the member’s loan.   …[H]ere, the Court held that the credit union’s loan officer had misled the debtor upon inception of the loan by representing that there was life […]

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« Previous Entries
  • Recently Posted Articles written by: Charels R. Harroun, Attorney at Law

    • Statement of Financial Affairs: Discharge Denied
    • Holder in Due Course – Checks
    • Reasonable Reliance on Debtor’s Loan Application
    • $100,000.00 Award to Employee
    • Chapter 13 Bankruptcy Home Equity Mortgage Modifications
    • Substantial Abuse: Bankruptcy Dismissed
    • Sale of Credit Union Collateral: “AS IS”
    • Mobile Home Lien Superior to Real Estate Mortgage
    • Deposit Set-Off Not Allowed
    • Credit Union Board-Member Suit Dismissed
    • Collateral: Embezzled Funds

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