American Bank v. Wegener

CLARK, Presiding Judge.

At issue in this case is the question of what amount of interest the holder of a secured promissory note may recover from the proceeds of sale of the mortgaged property on foreclosure by the holder of a junior mortgage debt. The trial court held the note in question to allow compound interest. American Bank, holder of the junior note, appeals contending that only simple interest should have been allowed. We affirm.

The facts of the case are not in dispute. Defendants Gilbert J. and Dorothy L. Weg-ener signed successive promissory notes, each secured by a deed of trust,…