Barber v. First Midwest Bank (In Re Johnson)

OPINION

THOMAS L. PERKINS, Chief Judge.

This matter is before the Court for decision after trial on the adversary complaint of Richard E. Barber, as Chapter 7 Trustee (“TRUSTEE”) for the Debtors, Robert and Jolene Johnson, (“DEBTORS”), against First Midwest Bank (“BANK”), to recover monies remaining in an Interest Reserve Account after foreclosure of a failed construction loan.

On March 15, 2003, Robert Johnson (“ROBERT”), a self-employed general contractor, obtained a $313,000 construction loan from the BANK for renovation of property commonly known as 2307 5th Avenue, Moline, Illinois, and…