Agribank, F C B v. Whitlock

Walter and Mary Whitlock (the parents) signed a note and gave a mortgage on their property for the purpose of assisting their children in obtaining a loan to purchase a farm. The lender subsequently released the children from liability on the note and sought to foreclose on the parents’ property. The trial court determined the parents were accommodation makers of the note and the release of the children released the parents from liability. We reverse.

I. Facts

Plaintiff, Agribank, FCB, is the successor to the Federal Land Bank of St. Louis, which conducted business as the Farm Credit Bank of…