...of action raising similar issues.
In the instant case, General Finance Corp. ("GFC") appeals from the district court's determination that the acceleration clause contained in its security agreement with the bankrupt violated the Georgia Industrial Loan Act. After carefully considering the record and the applicable Georgia law, we affirm.
On July 29, 1975 the debtor, Ted A. Sprouse, and his wife, Beverly Sprouse, entered into a loan contract with...regulates "the business of making loans of $3,000 or less." Ga. Code Ann. § 25-302. The contract consisted of a promissory note and a security agreement, both of which contained acceleration clauses.
On November 10, 1975 Sprouse filed a voluntary petition for bankruptcy. At the first meeting of creditors, Sprouse objected to GFC's claim, contending inter alia that the acceleration clause in the..., 230 S.E.2d 55 (1976). Any loan contracts which provide for the acceleration of unaccrued interest in violation of GILA are null and void, Ga. Code Ann. § 25-9903, and any money loaned under such contracts cannot be recovered. Hodges v. Community Loan Investment Corp., 234 Ga. 427, 216 S.E.2d 274 (1975).
In the contract at issue, the acceleration clause contained...