Question: Tri County Truck Diesel borrowed 165 000 from Security State

Tri County Truck & Diesel borrowed $165,000 from Security State Bank and pledged its inventory as security for the loan. In addition, Fred and Randelle Burk agreed to act as sureties for the loan. Tri County defaulted on the loan and Security Bank repossessed the collateral. The inventory was damaged while Security Bank held it, and as a result, the sale of the inventory brought only $5,257.50 at a public auction. The Burks raised the defense of the damages as a set off to their surety amount for the remainder of the loan. Security Bank said the Burks could not raise the damages as a defense because the Burks were sureties and had guaranteed the full amount of the loan. The trial court granted summary judgment for Security Bank, and the Burks appealed. What should the court do? [Security State Bank v. Burk, 995 P.2d 1272 (Wash App.)]

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  • CreatedJune 06, 2014
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