United States National Bank v. Chavez

The issues in this suit originated in 1966 when Mt. Angel College and the Benedictine Sisters of Mt. Angel became co-obligors on bonds secured by an indenture covering certain real property. The bonds were purchased by the United States of America (United States) through the Secretary of Housing and Urban Development (HUD) with the plaintiff, United States National Bank of Oregon (Bank), as trustee for the bondholders. In 1973 the name of Mt. Angel College was changed to Colegio Cesar Chavez (Colegio) and Colegio became the owner of the college. In June, 1974, the Bank, as trustee, filed a…