General Motors Acceptance Corp. v. Newton

Johnson, Judge.

Herb Newton owned and operated Freeway Buick-GMC Truck, Inc., formerly Freeway Buick, Inc., a motor vehicle dealership. General Motors Acceptance Corporation (GMAC) made two separate loans to Freeway Buick, Inc., one for the acquisition of business assets and the other for the acquisition of motor vehicle inventory. Freeway Buick, Inc., executed separate promissory notes and security agreements for each loan. Newton and his wife, Beverly Newton, personally guaranteed both of Freeway Buick, Inc.’s promissory notes. GMAC also made a real estate loan to the Newtons, who then…