Associates Financial Services Co. v. Eisenberg

The facts are not in dispute. On May 27,1965, Northern loaned DEC $56,605.20. The loan was secured by a chattel mortgage on two used airplanes owned by DEC and by personal guaranty of its president Robert P. Fleming and his wife Barbara L. Fleming. Eisenberg was a director of DEC at the time but was not a party to this transaction. On the following August 10th a second loan was made by Northern to DEC in the sum of $50,000 which was secured by a chattel mortgage on fixtures and equipment of DEC and by a pledge and a mortgage of real estate by P & C Inc., a corporation owned by Eisenberg. The…