The savings bank filed a motion for summary judgment in its action against the mortgage corporation and the guarantors for breaches of loan agreement and guaranty agreement, respectively, by the latter and for their charges against another defendant for the commission of bank fraud.
The plaintiff entered into a contract of loan at New Jersey with the mortgage banker wherein the savings bank extended a line of credit to the defendant for the purpose of closing the latter’s existing mortgage loans. In connection with the loan agreement, the officers, who are the owners of the mortgage corporation, executed individual guaranty contract which established their solidary liability of the mortgage banker’s obligation upon its failure to settle the obligations on time. A New York Criminal Lawyer said another guaranty was executed by the owner’s wife in relation with the loan agreement.
The stipulations of the loan agreement pertain to the grant of mortgage loans of the defendants’ borrowers where the line of credit shall be used to finance the mortgage contracts. Upon settlement of the mortgage loans by the borrowers, the proceeds of the loan would then be remitted to the savings bank and mortgage notes would be used as security in favor of the savings bank as part of their agreement. A Staten Island Criminal Lawyer said such mortgages would then be sold to potential investors and the plaintiff, as bailee, shall give the investors the mortgage notes where they shall pay the purchase price directly to the savings bank’s mortgage warehouse lenders who in turn would give the proceeds back to the savings bank as payment to the advances made by the defendants in their line of credit with the plaintiff. The defendants were responsible to the keeping of all the records pertaining to the loan agreement.