Trial court properly found a promissory note and mortgage in default and lifted all stays with respect to foreclosure and sale as to a 95-acre property owned by religious institution and used as collateral for a loan by a cemetery association. Affirmed.
A religious institution authorized the pledge of a 95-acre property it owned as collateral for a cemetery association’s loan from a bank, and the bank issued a mortgage to secure the cemetery association’s promissory note. Several years later, the association filed for Chapter 7 bankruptcy protection, ceased making payments on the promissory note, and the bank brought a mortgage foreclosure action seeking to foreclose on the 95-acre property and a 275-acre parcel also owned by the religious institution. The institution filed for summary judgment, arguing that foreclosure was improper where the institution had only executed the mortgage agreement and not a note or suretyship agreement and not pledged or mortgaged the 275-acre parcel. The trial court granted the motion in part, dismissing the 275-acre parcel from the complaint but denied it as to the 95-acre parcel. After trial, the trial court found the promissory note and mortgage agreement in default and lifted all stays with respect to the 95-acre parcel. The institution appealed.
