City National Bank of Fort Smith v. Bateman

STEPHENSON, Circuit Judge.

Plaintiff-appellant City National Bank of Fort Smith, Arkansas, appeals from the dismissal by the district court1 of its section *122114(c)(4)2 objection to the discharge of the defendant, William C. Bateman, from his debts. We agree with the contentions of City National and reverse the district court.

I. FACTS

On April 22, 1973, William C. Bateman and his wife, Evelyn Bateman, borrowed $20,000 from City National Bank in order to purchase Albert Pike Grocery. This debt was secured by the assets of the grocery and by a first mortgage on the Batemans’ home. William…