Carl and Beulah Humphrey signed as maker and comaker of a note for a line of credit

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Carl and Beulah Humphrey signed as maker and comaker of a note for a line of credit of $ 50,000 from the Grand Island Production Credit Association to purchase cattle. When the Humphreys failed to pay the outstanding balance on the line of credit, Grand Island sued Mr. and Mrs. Humphrey to recover the unpaid balance of $ 13,936. Mrs. Humphrey contended that Carl alone was liable for payment, even though she had signed the note, because she has since divorced Carl. Did Beulah Humphrey have primary liability on the loan along with her ex- husband, or should she be excused from payment?
Line of Credit
A line of credit (LOC) is a preset borrowing limit that can be used at any time. The borrower can take money out as needed until the limit is reached, and as money is repaid, it can be borrowed again in the case of an open line of credit. A LOC is...
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Business Law Principles and Practices

ISBN: 978-1133586562

9th edition

Authors: Arnold J. Goldman, William D. Sigismond

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