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First Indiana Federal Savings Bank v. Hartle

567 N.E.2d 834 (1991)

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First Indiana Federal Savings Bank v. Hartle

Indiana Court of Appeals

567 N.E.2d 834 (1991)

Facts

In 1963, Loell and Bonnie Good took out a loan from the Pendleton Loan Association, the predecessor in interest to First Indiana Federal Savings Bank (plaintiff). The loan was for $13,600 and was governed by a promissory note. The Goods also granted a mortgage to bank, which secured the loan and also contained a covenant by the Goods to pay the loan. Several years later, the Goods conveyed the property to Sarah Vilcsek. In 1971, Vilcsek conveyed the property by warranty deed to William and Joyce Hartle (defendants). The warranty deed stated that the property was subject to the mortgage to the bank and that the Hartles agreed to assume and pay the mortgage. The bank sued the Hartles, seeking a judgment for the balance due on the loan. The Hartles moved for summary judgment, arguing that they were not personally liable for the loan. The trial court granted summary judgment, and the bank appealed.

Rule of Law

Issue

Holding and Reasoning (Hoffman, J.)

Dissent (Sullivan, J.)

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