Monarch Coaches, Inc., Cross-Appellee v. Itt Industrial Credit, Cross-Appellant

POSNER, Circuit Judge.

This diversity suit arises from a dispute between a secured lender and its borrower over the seizure of the collateral. Monarch Coaches is in the business of renting out buses. It bought four buses in 1983 and financed their purchase with a loan from ITT Industrial Credit. It agreed to pay ITT $186,780 (principal and interest combined) in 60 monthly installments of $3,113 each (payable on the fifteenth of the month), later reduced to $2,464 when one of the buses was sold and the proceeds applied to the principal of the loan. Toward the end of 1985 Monarch sold another…