Opinion ID: 2500572
Heading Depth: 1
Heading Rank: 7

Heading: Proper Party in Interest

Text: [¶ 22] The Senior Wallaces argue next that the collateral and note were inextricably intertwined and when Pinnacle released its lien, it transferred to the bankruptcy trustee both the lien and the underlying note. Thus, they contend, Pinnacle no longer has a note on which to seek judgment. This argument finds no support in law and is contrary to the terms of the Loan Agreement, the Security Agreement and the bankruptcy court's Order Approving Stipulation for Avoidance of Lien. [¶ 23] As the Senior Wallaces correctly note, this Court has recognized that an assignment of a note carries its attached mortgage or lien with it, while an assignment of the mortgage or lien alone is a nullity. See Bradburn v. Wyoming Trust Co. of Casper, 51 Wyo. 73, 88, 63 P.2d 792, 797 (1936). This does little, however, to guide our decision here, where it is clear that the Loan Agreement and the Security Agreement are separate agreements, and Pinnacle did not transfer its Loan Agreement. [¶ 24] The Loan Agreement was the note from the Senior Wallaces agreeing to repay the Pinnacle loan, which also allowed Pinnacle to release any collateral securing the loan. The Security Agreement was the third-party agreement signed by the Junior Wallaces pledging the vehicle as collateral for the loan, without any agreement by the Junior Wallaces to be personally responsible for the debt under the Loan Agreement. Under these circumstances, the debt, by the terms of the Loan Agreement, survives separation from the collateral. Whether the lien has any separate meaning in the bankruptcy context or any other context is immaterial. Pinnacle seeks enforcement of the Loan Agreement, not its lien. [¶ 25] Additionally, there is no indication in the bankruptcy court's Order Approving Stipulation for Avoidance of Lien that Pinnacle transferred the Loan Agreement. The order does not address Pinnacle's note from the Senior Wallaces, or in any manner make that note property of the bankruptcy estate. Instead, the order's clear objective, as indicated by its title, was simply to avoid Pinnacle's lien on the vehicle. Specifically, the order directed that Pinnacle Bank's lien in a 2009 Nissan Versa owned by the Debtors (the Vehicle) is hereby avoided and the Vehicle and all proceeds therefrom constitutes property of the bankruptcy estate. Again, whether the lien, which the order further directs to be held for the bankruptcy estate's benefit, has any value independent of the Senior Wallaces' note is not material to our decision.