CSA 13-101 Loop, LLC v. Loop 101, LLC

Chief Justice BALES,

opinion of the Court.

¶ 1 When a deed of trust secures a promissory note and the trust property is sold at a trustee’s sale, AR.S. § 33-814(A) entitles judgment debtors, including guarantors, to have the fair market value of the property credited against the amount owed on the note. We hold that parties may not prospectively waive this provision.

I

¶2 Loop 101, LLC (“Loop”) borrowed $15.6 million from MidFirst Bank in February 2007 to construct an office building. The promissory note was secured by a deed of trust and payment was guaranteed by four individuals. The promissory…