Legal Question in Banking Law in Missouri

Bank Action

In 1998 my son, wife and I financed buying a tractor using the local bank. In 2001 the bank president rewrote the note using my house as collateral in order to extend the payoff time from five to thirty years. At this time he took my sons name off of the note, just my wife and me. No one told my son that his name had been taken off the new note and he gave the bank a list of machinery that still had the tractor listed as part of his inventory securing a note of his. My son filed bankruptcy and the bank sold his machinery but didn't put a reserve on the auction and came up short. Now the bank is sending me letters stating I have to deliver the tractor to them or they will sue me. The only explanation they give me is that my son who is thirty-two listed it as his inventory. I refinanced with another company and paid off all notes I had at the bank which included the tractor. The last letter I received stated they would take $5000.00

and if I didn't pay they would start legal proceedings.


Asked on 11/26/06, 9:56 pm

1 Answer from Attorneys
David Anderson Anderson Business Law LLC

Re: Bank Action

SOunds like the tractor was used as collateral for 2 different loans, and even though your loan was paid off, the tractor was still used as collateral for your sons loan which defaulted.

In whose name was the tractor titled? I would need to review all loan docs (both yours and sons) to advise. You will not want to delay.

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Answered on 11/27/06, 7:24 am


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