Rod's Auto Finance, Inc. v. Finance Co.

Johnson, Judge.

The Finance Company (TFC), pursuant to identical written contracts, purchased accounts receivable from Rod’s Auto Finance, Inc. and Universal Quality Motors, Inc., two used car dealerships. Relying on a provision in the contracts, TFC demanded that Rod’s and Universal repurchase several accounts after the debtors defaulted on their loans. Rod’s and Universal repurchased all but ten of the delinquent accounts. Rod’s and Universal then filed a declaratory judgment action seeking a determination that pursuant to the contracts they are not required to repurchase the ten remaining…