Watseka First National Bank v. Ruda

Frank and Virginia Ruda, guarantors on two promissory notes signed by Ken Ward, their son-in-law, appeal from a judgment in the amount of $186,322.97 entered against them in favor of Watseka First National Bank (Bank).

The Rudas owned some 1,000 acres of farmland in Iroquois County. Ken Ward farmed the land and paid cash rent to the Rudas. Ward financed his farming operation primarily with the Watseka Bank. In May of 1983, Ward signed two promissory notes: (1) $125,000 as a renewal of earlier loan to purchase capital assets and (2) $121,000 for operating expenses. One of the terms of the notes…