...impairment of the collateral by the bank. 3. The trial court did not abuse its discretion in denying N's belated request for permission to amend his pleading. PETERS, C.J. The principal issue in this appeal is the scope of a secured lender's...guaranty of Jefferson Pine's indebtedness demonstrate, on their face, that Nelson expressly waived any right he might otherwise have had to complain of the impairment of his right to be subrogated to the bank's interest in the secured collateral in...the occasion to consider the extent to which a guarantor may expressly waive claims relating to a secured creditor's alleged impairment of collateral, cases in other states uniformly recognize the...

...party. Judgment — Summary Judgment — Findings of Fact — Effect. [4] Bills and Notes — Discharge — Impairment of Collateral — Absence of Justification — Shifting Burdens of Proof. A court determines whether a creditor's impairment of secured collateral.... [6] Secured Transactions — Collateral — Impairment — Remedy of Surety. When a creditor unjustifiably impairs secured collateral, a surety is entitled to damages putting it in the same...: After granting a partial summary judgment in favor of the plaintiffs on the issue of the sellers' liability for impairment of collateral, the Superior Court for Island County, No. 86-2-00489-5...

...District Judge G. Ross Anderson, Jr.: Does South Carolina law recognize a secured creditor's right to bring a claim for negligent/wrongful impairment of collateral where a third party's negligence or other actions caused the erosion, destruction, or reduction in value of the secured party's...rise to a claim by a secured creditor against a third party for negligent impairment of collateral. 2. Duty arising from a property interest...creditor against a third party for negligent impairment of a security interest. 3. Duty arising under special circumstances The Trustee analogizes a secured creditor's interest in collateral to...

...issues at trial and on appeal in Hemenway involved application of the Uniform Commercial Code to questions of who is a surety and when a creditor's impairment of secured collateral is not...the Note secured by the Deed of Trust had been paid in full. Bel Air asserted a number of affirmative defenses including the doctrines of...foreclosure on the Deed of Trust was inextricably connected to the Note. The Deed of Trust secured payment of the Note. The purpose of Bel Air's nonjudicial foreclosure action was to recover the additional...

...(1963), required the district court to instruct the jury on impairment of collateral. § 9-207 provides in part that "[a] secured party must use reasonable care in the custody and preservation of...erred in not instructing the jury on impairment of collateral. Appellants also assert a multitude of other claims on appeal, all of which are patently frivolous, and none of which merits discussion...appellants leave to amend their answer; and, third, that the court correctly refused to instruct the jury on impairment of collateral. We affirm...

....) Plaintiffs' pleadings are defective because they fail to allege that they suffer damages because of the impairment of value of the collateral caused by the defendants' wrongful acts. The secured party...the present case, plaintiffs have a present accrued right as a secured party to foreclose on the collateral or to sue for an alleged impairment of the value of the collateral. There are no claims by...contractual right, or for a tort or statutory wrong, plaintiffs must allege and seek the proper measure of damages. Plaintiffs' compensatory monetary damages are limited to the alleged impairment of the value of the collateral or security interest, but in no event for a sum greater than the unpaid balance due on the secured indebtedness...

...); In re Territo, 32 B.R. 377, 379-80 (Bkrtcy.E.D.N.Y. 1983); Richard F. Duncan et al., The Law and Practice of Secured Transactions: Working with Article 9 § 2.05[3], pp. 2-57 to 2-58 (2008); R. Davis Rice, " McCullough v. Goodrich Pennington Mortgage Fund, Inc.: Are Secured Creditors Really `Secure' from Third Party Impairment of Collateral?," 59...compensation for a diminution in the value of the collateral. But replacing a business loss is not restoring the value of damaged collateral. There is no necessary relation between the value of collateral and a business loss that results from its being destroyed or damaged — as this case illustrates: the business losses exceeded the impairment of the value of the collateral ninefold. The claim of a secured creditor...secured party to bring against a third party when its collateral has been disposed of by the debtor." Taylor Rental Corp. v. J.I. Case Co...

...the view that the result should be the same, see Murray, Secured Transactions — Defenses of Impairment and Improper Care of Collateral, 79 Com. L. Jour. 265, 267 (1974...nonfeasance prevent the guarantor of payment from ever recovering from the collateral. [ Murray, Secured Transactions — Defenses of Impairment and Improper Care of Collateral, supra, 79 Com...the creditor's hands. The rule forbidding impairment of collateral has as its chief aim the protection of these potential benefits made available through subrogation. Defendant...

.... 1. SECURED TRANSACTION — IMPAIRMENT OF COLLATERAL — WEIGHT SUFFICIENCY OF EVIDENCE. — Where an accommodation party had opportunity to see to the correct filing of notice of a...been properly filed, a finding that there was not an unjustifiable impairment of collateral releasing accommodation party is sufficiently supported. 2. BILLS NOTES — HOLDERS IN DUE COURSE. — Argument...not recover because of 85-9-207 which required a secured party to use reasonable care in the custody and preservation of collateral and not fail to meet any obligation to preserve his security...

...party's impairment of the collateral. [518-519] A bank's security interest in a lease of restaurant equipment did not put the bank in "possession" of the lease so as to give rise to a duty under G.L.c...unequivocal waiver by the defendant of any right he may have had to be discharged under § 3-606 by the bank's impairment of collateral. See Greene v...). "Section 3-606. Impairment of Recourse or of Collateral. "(1) The holder discharges any party to the instrument to the extent that without such party's consent the holder . . . (b...

...substantive law regarding Appellants' contentions. As to Appellants' defense of impairment of collateral, the secured party's "unreasonable impairment" of the collateral securing a note...Appellants' evidence in defense of mutual mistake, innocent misrepresentation, and impairment of collateral. Appellants also assert the error of the Trial Court in overruling the Appellants' Motions for...collateral to become impaired, thereby discharging Appellants from liability. Based on these same allegations, Appellants counter-claimed for rescission of their contractual liability and for actual and...

...collateral" as used in Section 3-606. Section 3-606 does little to aid this inquiry because it does not define "impairment of collateral." Official Code Comment 5 to that section, however, states: "As to when a holder's actions in dealing with collateral may be `unjustifiable', the section on rights and duties with respect to collateral in the possession of a secured party...., 302 N.E.2d 828 (Ind. App.). See also Murray, Secured Transactions — Defenses of Impairment and Improper Care of Collateral, 1974 Commercial L.J. 265. We do not so interpret...in such instances. We conclude therefore that the impairment of collateral defense of Section 3-606 reaches conduct by a secured party which unjustifiably impairs collateral not in his possession or...

...protection simply means that there should be no further deterioration of the collateral and that the secured claim holder need not be compensated for the purported loss of its bargain during the...collateral exceeded the amount of the secured claim, it has been held that such equity cushion alone may suffice for the purpose of adequately protecting a secured claim holder during the period in which the...to retain his lien upon the specific collateral held at the time of filing, the purpose of the section is to insure that the secured creditor receives the value for which he bargained...

...agreement as to the applicability of the "impairment of collateral" defense to a transaction such as is involved here. The official comment to Code, 46-3-606, in discussing what action constitutes "unjustifiable" impairment, refers to Code, 46-2-207. That section relates to "Rights and duties when collateral is in secured party's...office of the Secretary of State constitutes an unreasonable impairment of collateral, and if so, were Curatolo and Sayre accommodation parties so that they would be released from liability by virtue of...possession," and governs direct impairment of the value of collateral...

...554. [1] While impairment of collateral generally releases a guarantor from its obligations under a guaranty agreement, this rule does not apply where the guaranty is unconditional. "The authorities agree that one who unconditionally guaranties an indebtedness is not released or discharged by virtue of . . . release or impairment of . . . collateral by a secured creditor.... DURHAM, C.J. The central issue in this case is whether impairment of collateral releases a guarantor from its...Commodities Act, 1930, 7 U.S.C. § 499a (1994) (PACA). The Court of Appeals reversed on this basis, holding that impairment of collateral discharges a guaranty...

...the code with respect to impairment of the collateral. [289-290] Provisions of art. 9 of the Uniform Commercial Code governing secured transactions are not applicable to security interests in real...the language of Stimpson's guaranty had waived a defense based on impairment of the collateral by the Trust. In his appeal, Stimpson attacks the determination of his liability and makes two arguments...directed to the amount of the judgment. 1. Availability to guarantor of defense based on impairment of the collateral. (a) Foreclosure norms...

.... 1988) (holder's subordination of its lien to the interest of a third party lender constitutes impairment of the collateral and an accommodation maker will be discharged from liability on the note); Hughes v. Tyler, 485 So.2d 1026 (Miss. 1986) (value of real estate, which served as collateral for a promissory note, was impaired when the holder-secured party...security); Beneficial Fin. Co. of Norman v. Marshall, 551 P.2d 315 (Okla.App. 1976) (unjustifiable impairment of collateral by a secured party will...the subordination of the Bigelow deed of trust and that the resultant impairment of collateral and increase in their risk of repayment relieved them of liability pursuant to...

... Once creditors had knowledge that makers of note had become sureties, creditors were subject to the 9A V.S.A. § 3-606(1)(b) defense of impairment of collateral. 9A V.S.A. § 3-606. 7. Secured Transactions... Comakers of promissory note were not entitled to summary judgment based on secured creditor's unjustifiable impairment of collateral because although creditor subordinated their...promissory note were not entitled to summary judgment based on secured creditor's unjustifiable impairment of collateral because although comakers established that creditor released most of acreage securing...

.... Gruber Law Office, by: Rita W. Gruber, for appellee. 1. SECURED TRANSACTIONS — IMPAIRMENT OF RECOURSE OR OF...PROVE TO BE ENTITLED TO DISCHARGE. — The surety must prove two elements in order to be entitled to discharge — that the holder of the note was responsible for the loss or impairment of the collateral, and...the extent to which that impairment results in loss. 4. PRINCIPAL SURETY — ORDINARILY, CREDITOR WILL DISCHARGE GUARANTOR WHEN IT RELEASES PARTIES IN POSSESSION OF COLLATERAL SECURING NOTE — RULE NOT...