Ellis v. Robins Federal Credit Union

Felton, Chief Judge.

1. Where the two defendant co-makers or sureties on a defaulted promissory note made 6 partial payments thereon over a 4 months’ period of time, with full knowledge that the collateral had been lost to the superior claims of a trustee in bankruptcy or other prior secured creditors due to the plaintiff payee’s failure to record its security interest, they were thereby estopped to assert, to the joint and several action for the balance of the indebtedness against the defendants and other obligors on the note, the defense of the said failure to record. Schwitzerlet-Seigler…