Opinion ID: 169420
Heading Depth: 3
Heading Rank: 2

Heading: Automobile Loan

Text: 12 In March 1999, Defendant sold the Mitsubishi for $10,000 to Michelle Fischer, an acquaintance of co-defendant David Solomon. 3 Defendant required that Ms. Fischer make a $1,000 down payment. Ms. Fischer obtained the remaining $9,000 from a MetroBank loan issued on March 19, 1999. MetroBank took a lien against the vehicle, which had a Kelley Blue Book value of between $9,000 and $10,000. Mr. Solomon acted as a guarantor. 13 According to Cody Machala, a junior loan officer at MetroBank, Defendant asked him to examine Ms. Fischer's loan application. Mr. Machala's examination revealed that both Ms. Fischer and Mr. Solomon had poor credit. As a result, Mr. Machala did not feel comfortable making this loan. (App. at 671.) Mr. Machala, however, did not explain his concerns to Defendant because he felt a little intimidated by Defendant and because he believed Defendant wanted him to make the loan. (App. at 672.) Instead, Mr. Machala sought the advice of two more senior MetroBank loan officers. Those loan officers both stated that because the amount of the loan was within Defendant's lending authority, Mr. Machala should make the loan. At least one of the loan officers cautioned Mr. Machala, however, to put Defendant's initials on the paperwork to signify that Defendant was in fact the loan officer of record. 14 Defendant informed Mr. Machala to distribute the loan proceeds to two of Defendant's outstanding loans with MetroBank. Mr. Machala applied $6,476.85 to Defendant's car loan, completely paying off that debt. He applied the remaining proceeds plus the $1,000 down payment to another of Defendant's loans. This distribution was recorded on several official bank forms as well as a nonstandard memorandum created by Mr. Machala for the express purpose of detailing the loan proceed distribution due to where the proceeds were going. (App. at 676.) 15 Ms. Fischer timely tendered the first three monthly loan installment payments before defaulting. Mr. Solomon then paid approximately four months' worth of delinquent payments before also defaulting. Ultimately, MetroBank repossessed the Mitsubishi and sold it at auction for $7,130.