Carrillo v. Valley Bank of Nevada

OPINION

Valley Bank of Nevada (Valley Bank or the Bank) sued Carrillo for the balance due on a promissory note. The lower court entered summary judgment in favor of the Bank. For reasons hereafter specified, we reverse.

In February 1981, Carrillo, a joint venturer with Tonopah Enterprises, executed a one-year lease with an option to purchase the OK Corral Inn (the property) in Tonopah. Thereafter, Carrillo obtained a construction loan for approximately $350,000 from Valley Bank. The loan was secured by a trust deed on Carrillo’s leasehold interest in the property, and the loan proceeds were…