Hardwick Bank & Trust Co. v. Fritts (In Re Fritts)

MEMORANDUM

CLIVE W. BARE, Bankruptcy Judge.

At issue in this proceeding is the dis-chargeability of a judgment against the debtor in the amount of $76,974.00 entered in the United States District Court for the Northern District of Georgia at Rome. Plaintiff asserts nondischargeability under 11 U.S.C.A. § 523(a)(2)(B) (1979). 1

I

In May 1980 the Hardwick Bank & Trust Company approved a loan to the Brown- Fritts-Harris Corporation in the sum of $85,000.00. This loan represented 50% of the corporation’s anticipated start-up expenses and equipment cost in opening an Orange-Julius outlet in the Walnut…