In October 1980, the Chunkapuras (defendants) executed a promissory note for $17,000 to First State Bank of Forsyth (plaintiff), secured by a deed of trust for property to trustee First Montana Title Insurance Company, naming the bank as beneficiary. The Chunkapuras made payments on the note totaling $2,042.98, after which they defaulted. Thereafter, the bank brought an action for the unpaid principal, interest, sale of the property securing the note, and a deficiency judgment after the sale proceeds were applied. The bank then purchased the property at the sheriff’s sale for $10,000 as the only bidder. The district judge concluded that the bank was barred from obtaining a deficiency judgment under the Small Tract Financing Act (the act). The bank appealed, contending that because it chose to proceed by judicial foreclosure rather than trustee sale, it was entitled to a deficiency judgment.