South Shore Thrift Corp. v. National Bank of Far Rockaway

The plaintiff, as security for a loan of $10,000, made to it by the defendant, pledged a certain bond and mortgage. Plaintiff, having failed to pay the note, the defendant, without notice to plaintiff, sold the collateral to one Brand. Plaintiff brought an action against the bank and Brand, alleging, notwithstanding the fact that the terms of the note required no notice of sale, that in selling the collateral without notice the bank violated an oral agreement that it would not foreclose the collateral without giving “ reasonable notice.” A motion by the bank to strike out certain parts of the…