United Bank v. Sun Mesa Corp.

MUECKE, District Judge.

BACKGROUND

On January 6, 1988, this Court granted the Defendants’ Motion for Judgment on the Pleadings and ruled that the United Bank did not have standing to assert securities fraud claims on behalf of approximately fourteen hundred bondholders whom the bank serves as indenture trustee. Standing was absent because the relevant agreements only provided the Bank with standing to cure default on the underlying loan. Since the fraud claims could have been asserted regardless of breach, the claims were not a remedy for default. Thus, the specific language of the agree*432ments…