Federal Deposit Insurance v. Aaronian

CYNTHIA HOLCOMB HALL, Circuit Judge:

The question presented is whether a court in which a judgment was registered erred in determining that the judgment was constitutionally entered by confession. We have jurisdiction in this diversity appeal and affirm.

I

The case centers on the enforcement mechanisms of a loan agreement. On December 31,1985, the appellant, Rick S. Aaro-nian, executed a promissory note in favor of Atlantic Financial Savings, F.A.,. for $130,-050.17. Aaronian intended to invest the money in a tax-favored windmill project.

The note contained a confession of judgment, or cognovit…