Beach v. Resolution Trust Corp.

I concur.

In a wraparound note transaction, the debtor signs a note that includes, or “wraps around,” the principal balance of an underlying indebtedness. In most cases, the debtor expressly does not assume responsibility for the underlying indebtedness. In the present case, however, Beach, the wraparound note debtor, is responsible for the underlying indebtedness, the Chapman note that was “wrapped” around.

The Chapman note was secured by a lien on 90 acres. When Beach, along with two other men (the “Beach group”), subsequently borrowed money from American, and American wanted a lien on the…