Earlier today you met with Mr. Wayne Tarrance, a consumer loan specialist employ

Question

Earlier today you met with Mr. Wayne Tarrance, a consumer loan specialist employed by Anderson Bank. Lambert, Bendini & Bocke represent the bank. Mr. Tarrance wanted legal advice about a problem with one of the bank's customers. It seems Mr. Tarrance recently completed a loan to a gentleman called Eddie Lomax, so that he could buy a new $60,000 Tesla. Mr. Tarrance informed you that he completed all of the required paperwork at the time of the loan, including a written financing statement giving the bank a security interest in the new vehicle. After several months of Mr. Lomax not making payments on the car, the bank decided to repossess the vehicle and sell it to repay the defaulting loan. Although the financing statement between Mr. Lomax (debtor) and Anderson Bank (creditor) was correctly perfected at the time it was completed, Mr. Tarrance has just discovered that the customer’s full name is actually Edward Lommax. He wants to know if the security under the agreement still enforceable.

Explanation / Answer

During the time of loan to be sanctioned MR. Lomax should submit all his proofs to the Anderson Bank and it was the duty of Mr. Wayne Terrance to check whether all the details submitted by the person who applies for the loan was correct or wrong. At that time Mr. Terrance do not check the details and sanctioned the loan for Mr. Lomax to buy an expensive car. I can clearly say that Mr. Lomax done this crime intentionally. According my point of view, the agreement that which was done before the loan sanctioned was not been enforceable at this position because the name of the person was entirely changed and there will a chance that Mr. Lomax can blame the bank management. There was only one chance that Mr. Terrance claim a suit against that person regarding the cheating and he Mr. Terrance should submit some proofs to the court that which can regain their loan back.

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