Federal Land Bank of Wichita v. Krug

The opinion of the court was delivered by

Lockett, J.:

Herman Krug Farms, Inc., Herman A. Krug, and Esther B. Krug (the Krugs) borrowed money from and executed a mortgage and note to the Federal Land Bank of Wichita to purchase farm and ranch land. The loan was to be repaid in 33 annual installments. Three years later the Krugs entered into a contract for the sale of the land to the partners in S & S Ranch. S & S executed an assumption agreement of the Krugs’ loan from the Bank. S & S made two annual payments but refused to make additional payments when it was unable to obtain a deed from the…