Simmons v. Peoples Bank of Danville (In Re Simmons)

MEMORANDUM OPINION

WILLIAM E. ANDERSON, Bankruptcy Judge.

On October 10, 1979, Donald and Melba Simmons (Debtors) obtained a loan from Peoples Bank of Danville (Bank). As part of this transaction the Debtors executed a Security Agreement which stated in pertinent part that:

As collateral security for the payment of this note and any other liability, contingent or otherwise (including overdrafts) of the makers, guarantors, endorsers and any other parties to this note .. . the following collateral has been deposited with and is hereby pledged to the holder thereof.

The instrument then goes on to…