Schafer Properties v. Tara State Bank

Andrews, Judge.

This case is before us on appeal from the trial court’s order granting summary judgment to Tara State Bank (“Bank”) on its claim against Schafer Properties and Paul and John Hoffman (“defendants”) for default on an $85,000 promissory note. Defendants admit they are in default on the note but claim the note is void and unenforceable as part of a compromise agreement based on a previous note for which there was no consideration and which allegedly violated the “anti-tying” provisions of 12 USC 1972.

The trial court found the note was part of a negotiated, bargained-for, compromise…