Sioux County State Bank v. Veenstra

SNELL, Presiding Judge.

In 1976 the plaintiff bank loaned $25,000 to the defendants, Veenstras, and took a second mortgage on the Veenstras’ house. The mortgage note called for monthly payments to be amortized over a 20-year payment schedule. However, the mortgage note also contained a “balloon clause” permitting the bank to declare the entire balance due at the end of five years. The Veenstras assert that the portions of the note relating to the five-year balloon payment were left blank at the time they signed the note. They assert that the agreement made was that the term of the note would…