Mut. of Omaha Bank v. Murante

Lender made loans to Borrower that were secured by deeds of trust describing real estate owned by Borrower. As additional security for the loans to Borrower, Guarantor promised payment of the indebtedness on the promissory notes. Borrower subsequently defaulted, and Lender sought payment of the indebtedness from Guarantor. Guarantor moved to amend his answer to assert he was not liable to Lender because Lender was barred by section 76-1013 of the Nebraska Trust Deeds Act (Act) from pursuing a deficiency action against Borrower. The district court granted summary judgment in favor of Lender. At issue on appeal was whether a guaranty of a promissory note secured by a deed of trust is subject to the Act. The Supreme Court affirmed, holding that Guarantor's guaranty was not subject to the Act, and under the terms of the guaranty, Guarantor was liable for the total amount of Borrower's debt, less the trustee's sale price. View "Mut. of Omaha Bank v. Murante" on Justia Law