Chrysler Credit Corporation v. Louis Joliet Bank and Trust Co.

KANNE, Circuit Judge.

Louis Joliet Bank and Trust Company and Chrysler Credit Corporation each held a security interest in the beneficial interest in an Illinois land trust. When the debtor defaulted on his obligations to the bank, the bank foreclosed its senior security interest. Chrysler brought a diversity suit in the district court for declaratory judgment, claiming. that the parties’ actions, as well as the doctrine of merger, had terminated the land trust and destroyed the bank’s senior security interest. The district court disagreed and entered summary judgment in favor of the bank. We…