Beneficial Finance Co. of Jamestown v. Lawrence

PEDERSON, Justice.

This is an appeal by the lender, Beneficial, from a judgment which held that, under the Uniform Commercial Code (Title 41, NDCC), the obligation of the accommodation party, Bruce Lawrence, was discharged because Beneficial unjustifiably permitted the impairment of collateral when it failed to perfect a security interest. 1 We do not agree that Beneficial unjustifiably impaired collateral in this case. The judgment is reversed.

Although there had been a series of loan transactions involving some or all of the participants, the significant item in this dispute is a note dated…