Hanover Insurance v. Fremont Bank

ORDER DENYING MOTION TO DISMISS [DOCKET NO. 15]

DONNA M. RYU, United States Magistrate Judge

Before the court is a motion to dismiss filed by Defendant Fremont Bank (the “Bank”). [Docket No. 15.] The court held a hearing on the motion on July 31, 2014. For the reasons stated below and at the hearing, the motion is denied.

I. BACKGROUND

A. The Bank’s Loans to Legg

The Bank made business loans to a construction contractor called Legg, Inc. Am. Compl. [Docket No. 10] at ¶ 8. Those loans were secured by collateral that included Legg’s accounts receivable. Id. The Bank recorded a UCC Financing…