JPMorgan Chase Bank v. Johnson, et al., No. 12-2370 (8th Cir. 2013)Annotate this Case
In each of these consolidated cases, JPMorgan attempted to use the Arkansas Statutory Foreclosure Act (SFA), Ark. Code Ann. 18-50-101 - 18-50-117, to foreclose on the borrower's home. At issue was whether a national banking association chartered by the Office of the Comptroller of the Currency but not registered to do business with the Arkansas Secretary of State or the Arkansas Bank Department could use the non-judicial foreclosure procedure provided by the SFA. The court concluded that an entity could be authorized to do business in Arkansas for SFA purposes pursuant to either state or federal law. In JPMorgan's case, federal law provided such authorization. Therefore, the district court correctly concluded that JPMorgan was authorized to do business in Arkansas and could avail itself of the benefit of the SFA. Accordingly, the court affirmed the judgment.