Skip to main content

Sunflower Bank N.A. v. Otte (In re Otte)

Sunflower Bank N.A. v. Otte (In re Otte)

Ruling
Obligation to bank was not excepted from discharge since bank failed to show an intent to defraud by debtor.
Procedural posture

Adversary plaintiff bank sought to have individual debtor's guaranty obligation be held nondischargeable under 11 U.S.C. § 523(a)(2)(B) for defaulting borrower corporation's loans. The bank claimed that the debtor had fraudulently reported the borrower's inventory. The court previously ruled the debt was not one for fraud or defalcation while acting in a fiduciary capacity that would be excepted from discharge under 11 U.S.C. § 523(a)(4).

ABI Membership is required to access the full summary of Sunflower Bank N.A. v. Otte (In re Otte) Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

opinion summary, case decided on May 24, 2006 , LexisNexis #0606-093