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In re Bruno

747 F.2d 53 (1984)

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In re Bruno

United States Court of Appeals for the First Circuit

747 F.2d 53 (1984)

Facts

The United States government (plaintiff) loaned money to Atcorp I, Inc. (Atcorp). The loan was guaranteed by Atcorp’s principal officers (the officers) (defendants). The guaranty agreement provided that the officers would be liable for the loan regardless of whether Atcorp filed for bankruptcy or was otherwise released from the loan. Atcorp filed for bankruptcy. The government filed a lawsuit against the officers to collect postpetition interest—interest on the loan accrued after Atcorp’s bankruptcy petition was filed. The officers argued that the government could not collect postpetition interest, because the collection of postpetition interest from a debtor is generally disallowed. The district court granted summary judgment for the government, holding that under the guaranty agreement the officers were liable for postpetition interest after Atcorp filed for bankruptcy. The officers appealed.

Rule of Law

Issue

Holding and Reasoning (Aldrich, J.)

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