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IN RE AUZA

BAP No. AZ-94-1167-MVAs. Bankruptcy No. 91-01592-TUC-LO. Adv. No. 92-0326.

181 B.R. 63 (1995)

In re Joseph A. AUZA, Sr. and Carmen A. Auza, Debtors. WESTERN FARM CREDIT BANK, and Arizona Agricultural Credit Association, Appellants, v. Joseph A. AUZA, Sr. and Carmen A. Auza, Appellees.

United States Bankruptcy Appellate Panel of the Ninth Circuit.

Decided April 21, 1995.

Attorney(s) appearing for the Case

Rebecca R. Driggs, Phoenix, AZ, for appellants.

Michael D. Stofko, Tucson, AZ, for appellees.

Before MacDONALD, VOLINN and ASHLAND, Bankruptcy Judges.

OPINION

MacDONALD, Bankruptcy Judge:

This case involves the enforceability of dragnet clauses in Arizona. The appellant, creditor Western Farm Credit Bank ("WFCB"), contends the debtors' personal guarantee of loans made to a partnership and corporation is secured by dragnet clauses in security agreements and mortgages the debtors executed to obtain unrelated personal loans. The bankruptcy court found the dragnet clauses unenforceable. We AFFIRM.<...

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