United States Bankruptcy Court for the District of Delaware
452 B.R. 138 (2011)
WL Homes, LLC (WL Homes) entered into a credit loan agreement with Wachovia Bank, National Association (Wachovia) in 2007. As collateral for the agreement, WL Homes granted a security interest in the bank account of JLH Insurance Corporation (“JLH”), which was a wholly owned subsidiary of WL Homes. The JLH bank account was a Wachovia account. There were seven signers to the depository certificate, all of whom were authorized to manage the JLH account. Five of the seven signers were exclusively officers of WL Homes. The remaining two signers were officers of both WL Homes and JLH. Wayne Stelmar was the president of JLH and the chief financial officer of WL Homes. Stelmar signed loan agreement letters in June and July of 2008, which reaffirmed all of the obligations of WL Homes contained in the credit loan agreement. On February 19, 2009, WL Homes filed for bankruptcy. Wachovia then commenced an adversary proceeding in the bankruptcy, seeking a declaration that it could enforce its security interest because it held a perfected security interest in the JLH account. Both Wachovia and the bankruptcy trustee moved for summary judgment.
Rule of Law
Holding and Reasoning (Shannon, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.
Here's why 218,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 14,100 briefs, keyed to 189 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.