Dollar Bank v. Swartz

OPINION OF THE COURT

FLAHERTY, Justice.

In this mortgage foreclosure action brought by a bank against guarantors of a commercial loan to a new corporation, we are faced with interrelated issues involving the perfection of security interests under the Uniform Commercial Code, involuntary bankruptcy of the primary debtor, the impairment of obligations, and the interpretation of contract language requiring “reasonable” efforts by the bank to collect the debt from the corporation prior to foreclosing on the mortgage. We affirm the grant of summary judgment for the mortgagors, precluding foreclosure…