In re the Estate of Harbaugh

The Garfield County Bank (Bank) of Jordan, Montana, filed a creditor’s claim against the estate of David Larry Harbaugh (Larry Harbaugh). The estate disallowed the claim. The Bank petitioned the District Court of the Sixteenth Judicial District, Garfield County, Montana, for allowance of the claim. The petition was denied and the bank appealed. We reverse the District Court.

In May, 1976, Robert Baugh, Alta Baugh, and Larry Harbaugh signed a promissory note with the Garfield County Bank in the amount of $15,000. The note was payable in monthly installments of $198.23 until 1986, when the…