Toy National Bank of Sioux City v. McGarr

LARSON, Justice.

This is an appeal by defendant Wanda McGarr from a judgment of foreclosure of a mortgage on the family residence owned by her and her husband, Herbert McGarr. The defense raised in the trial court was that the security interest was subject to rescission by the borrower for failure of the bank to comply with the federal Truth-in-Lending Act. The trial court ruled that the federal act did not cover this security interest because it was entered into in conjunction with a business loan. We affirm.

The events leading up to this action commenced on March 19, 1974, when Herbert McGarr…