United Bank v. West Central Ga. Bank

This declaratory judgment action was filed by United Bank to determine whether the deed to secure debt granted by borrower Crews to West Central Georgia Bank West Central complied with OCGA § 44-14-80. On cross-motions for summary judgment and stipulated facts, the trial court concluded that the deed complied with the statute and that West Central’s nonjudicial foreclosure on the property was valid. United Bank appeals. On April 2, 1996, West Central loaned William Crews over $50,000 pursuant to a note of the same date. Crews executed the deed to secure debt in favor of West Central on the property at 308 Garden Terrace, Thomaston, Georgia. That deed, duly recorded in the Upson County Superior Court records on April 11, 1996, states that Crews has borrowed the money “and has agreed to pay the same, with interest thereon, according to the terms of a certain note the “note” given by Grantor to Grantee, bearing even date herewith, the note, being made a part hereof by reference; April 2, 1997 . ” Emphasis supplied. The nonitalicized portion is a printed form, the italicized date was typed into the form. That note, although not filed with the deed, specifically states that April 2, 1997 is the maturity date of the loan.

On January 25, 1999, United Bank loaned William Crews over $80,000, with the same property as collateral. At that time, the West Central deed to secure debt was a first secured lien on the property. Although United Bank had a search made of the real estate records of Upson County to determine the state of Crews’ title, the West Central deed to secure debt was “mistakenly overlooked.”