Opinion ID: 675769
Heading Depth: 2
Heading Rank: 3

Heading: Released Collateral

Text: 37 Sheahan next argues that the district court erred by failing to reduce its amount of loss finding by subtracting the value of the collateral Mercantile Bank released in settlement of the civil lawsuits with Sheahan. Sheahan reasons that Mercantile Bank actually is responsible for increasing the amount of the loss in this case because in settling the civil cases it released its right to recover against valuable collateral including the personal guarantee of Sheahan's father and the second deed of trust in Sheahan's home. Hence, he concludes this collateral that was available to Mercantile Bank at one time should be subtracted from the amount of loss. We disagree. 38 We have recently held that the amount of loss calculation did not turn on whether [the bank] recovered or could have recovered its potential loan losses by foreclosing on the pledged security. United States v. Morris, 18 F.3d 562, 570 (8th Cir.1994). Thus, the amount of loss is not affected by whether the victim could have recovered from additional collateral. Moreover, we have even held that the loss calculation is not reduced where the victim actually recovers money from the sale of collateral or from restitution. See Prendergast, 979 F.2d at 1291-92; United States v. Johnson, 908 F.2d 396, 397-98 (8th Cir.1990). Hence, even if Mercantile Bank would not have released its interest in the additional collateral in this case, the availability of that collateral to Mercantile Bank would not reduce the loss calculation for the purposes of section 2F1.1. The district court committed no error in declining to reduce the amount of loss finding by the value of the collateral Mercantile Bank released.