Presque Isle Apartments, L.P. v. Fidelity Union Bank/First National Bank (In Re Presque Isle Apartments, L.P.)

OPINION

WARREN W. BENTZ, Bankruptcy Judge.

Background

On January 29,1985, Presque Isle Apartments, L.P. (“Debtor”) executed a ninety-day promissory note (“Note”) in the amount of $300,000 bearing an interest rate of 12% per annum in favor of First Fidelity Bank (“Bank”). The Bank was secured by a second mortgage on the debt- or’s 96 unit apartment complex. The Note provided that, in the event of default, the Bank was entitled to “collect interest from the date of nonpayment, on the unpaid balance of this note (including interest and principal) at the highest rate of interest allowed by law.”

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