General Electric Credit Corp. of Tennessee v. Larson

LEVINE, Justice.

This is an appeal from a summary judgment granted in favor of General Electric Credit Corporation of Tennessee (GECC) in its action to recover $132,273.31 plus interest on two personal guaranties given to it by Ray Larson and Donald M. Wright. We reverse.

On August 5, 1980, GECC loaned Midwest Aviation, Inc. (Midwest) $573,300 for the purpose of purchasing an airplane. In return for the loan, Midwest executed a promissory note payable in 84 consecutive monthly installments. To secure the note, Midwest pledged a $35,000 certificate of deposit and executed an aircraft chattel…