Opinion ID: 2193938
Heading Depth: 1
Heading Rank: 2

Heading: Default in Payments.

Text: Although the Mannings concede they were in default long before trial, they argue the petition should have been dismissed because they were not in default when suit was started. This depends on whether Ralph made a valid tender of payment at the time the $5,000 note came due on August 30, 1977. The offer of payment by Ralph was coupled with a request that the bank advance him additional funds to cover the checks. He says the bank was obligated to do this by the terms of its commitment to lend him and his wife $100,000. This is not true. If additional loans were made, the mortgage of May 24, 1976, was to secure them up to a total of $100,000. However, the bank was not obligated to make any advances and could, as it in fact did, refuse further credit. A tender must be absolute and unconditional. Lyon v. Willie, 288 N.W.2d 884, 894 (Iowa 1980). One who makes a tender may insist that the other party fulfill his or her contractual obligation without affecting the validity of the tender. Id. As we have already said that the bank need not extend Ralph additional credit to meet this obligation, the tender as made was conditional, and the bank was justified in refusing to accept it. As a result, the Mannings were in default when suit was brought.