- 11 U.S.C.
Sunflower Bank N.A. v. Otte (In re Otte)
May
24
2006
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).
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Court
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