Idaho Trust Bank v. Christian
Annotate this CaseIn 2006, Trinity Investments, LLC executed and delivered to Idaho Trust National Bank (Lender) a promissory note in the principal amount of $5,625,000.00 to develop a parcel of real property and construct townhouses upon it. Trinity was to make monthly payments of accrued interest and to pay the outstanding principal, plus accrued interest, on December 8, 2007. Borrower and Lender later entered into several agreements to change the terms of the note to reduce the principal and extend the date of maturity. The note was secured by a construction deed of trust on the real property being developed. Michael R. Christian (Guarantor) executed the promissory note as a member of Borrower, and he also signed a guaranty of Borrower's indebtedness to Lender. Trinity ultimately defaulted on the loan, and Lender brought a lawsuit against it to recover on the promissory note. During that proceeding, they stipulated to have a receiver appointed to market and sell the real property that was the collateral for the note. The receiver was authorized to sell the townhouse units for 80% of their appraised value without court approval. Guarantor signed the stipulation appointing the receiver as attorney in fact for Trinity. By June 2011, the receiver had sold all of the remaining properties. Those sales did not generate sufficient funds to pay the sums owing on the note. In 2011, the Lender brought this action to recover from Guarantor the balance owing by Borrower on the note. The district court granted Lender's motion for summary judgment and denied Trinity's motion for reconsideration. The Guarantor timely appealed. Upon review, the Supreme Court affirmed, finding that there under the definition written in the parties' contract, '[i]ndebtedness' include[d], without limitation, loans, advances, debts, . . . and liabilities of Borrower . . . whether: . . . barred or unenforceable against Borrower for any reason whatsoever."
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