Peoples National Bank v. Peterson

On February 28, 1968, and June 3, 1968, defendants Robert W. and Josephine A. Peterson (hereinafter referred to as the Petersons) negotiated two farm loans from the Royal City Branch of Peoples National Bank of Washington in the principal amounts of $58,200 and $16,500 respectively. The loans were evidenced by two promissory notes, secured by security agreements covering specified crops and farm machinery, and induced by financial statements asserting ownership in several farm units and a net worth of approximately $250,000.

In late 1968, the notes fell in arrears and were extended for 1 year…