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AMERICAN SAV. BANK v. WASCHKAT

No. 86-1860.

423 N.W.2d 202 (1988)

AMERICAN SAVINGS BANK, Appellant, v. Janice C. WASCHKAT, Appellee, and Lavern H. Waschkat, Defendant.

Supreme Court of Iowa.

Rehearing Denied June 15, 1988.

Attorney(s) appearing for the Case

David M. Engelbrecht of Engelbrecht, Ackerman & Hassman, Waverly, for appellant.

Gary J. Boveia of Boveia Law Offices, Waverly, for appellee.

Considered en banc.

CARTER, Justice.

The plaintiff, American Savings Bank (the bank), appeals from an order of the district court which reduced the amount of a judgment it recovered against appellee, Janice Waschkat, as co-obligor on a promissory note. This action by the court was premised on receipt by the bank of the proceeds of collateral securing the note in controversy. The collateral was owned by Janice's co-obligor, Lavern Waschkat, was sold by him, and the proceeds were applied...

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