Opinion ID: 2612171
Heading Depth: 1
Heading Rank: 1

Heading: effect of the dragnet clauses

Text: Apart from the Bank's evidentiary objection, the principal question in this appeal is whether the land loan and the construction loan should be treated as a single obligation. If the two loans are so treated, then Kirschbaum is correct when he states that the Bank may not obtain a deficiency judgment; for the very purpose of the anti-deficiency statute is to free him of personal liability once the Bank consummates a nonjudicial foreclosure. On the other hand, if the two loans are viewed as independent obligations, the Bank is free to pursue one remedy with respect to one loan and a separate remedy with respect to the other. Kirschbaum asserts that the doctrines of estoppel and quasi-estoppel prevent the Bank from claiming that the two loans are independent obligations enforceable by separate remedies since the Bank treated the two loans as a single obligation during repayment negotiations. Alternatively, Kirschbaum argues that apart from notions of estoppel the two loans are inherently so interrelated that they should be viewed as a single obligation. [9]