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Omega Corp. owned a factory that was encumbered by a mortgage securing Omega's note to Eagle Bank. Omega sold the factory to Spear, Inc., which
Omega Corp. owned a factory that was encumbered by a mortgage securing Omega's note to Eagle Bank. Omega sold the factory to Spear, Inc., which assumed the mortgage note. Later, Spear defaulted on the note, which had an outstanding balance of $15,000. To recover the outstanding balance, Eagle Must sue both Spear and Omega. May sue either Spear or Omega. May sue Spear only after suing Omega. Must sue Spear first and then proceed against Omega for any deficiency
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