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AMERICAN FEDERAL S & L v. SCHENK

No. 89-408.

785 P.2d 1024 (1990)

AMERICAN FEDERAL SAVINGS AND LOAN ASSOCIATION, Plaintiff and Appellant, v. Dennis SCHENK; Phyllis Diehl; John Jepson; Townsend Electric, Inc., United States Department of Treasury, Internal Revenue Service; State of Montana, Department of Labor and Industry, Unemployment Insurance Division; and State of Montana, Department of Revenue, Defendants and Respondents.

Supreme Court of Montana.

Decided January 30, 1990.

Attorney(s) appearing for the Case

Jock O. Anderson argued; Gough, Shanahan, Johnson & Waterman, Helena, for plaintiff and appellant.

John T. Flynn argued, Townsend, R. Bruce McGinnis, Dept. of Revenue, David Scott, Dept. of Labor & Industry, Kris A. McLean, Asst. U.S. Atty., Charles A. Graveley, Helena, for defendants and respondents.

BARZ, Justice.

American Federal Savings and Loan Association appeals from an order of the District Court for the First Judicial District, Broadwater County, granting summary judgment in favor of Townsend Electric, Inc. We reverse and remand.

Dennis Schenk borrowed $80,000 from appellant American Federal Savings and Loan to purchase the Commercial Bar in Townsend. Schenk executed a promissory note secured by a deed of trust recorded February 28, 1984, in favor...

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