Court Opinion

ID: 9639708
Source: CourtListenerOpinion
Date Created: 2023-08-22 16:45:43.076272+00
Date Added: 2024-06-11T18:10:21.167427
License: Public Domain

Steele Hays, Justice, dissenting. I agree that under Ark. Stat. Ann. § 4-3-118(f) (1987) a bank may not unilaterally extend payment of a promissory note more than once, or for a period longer than the original note, without releasing an accommodation maker. However, § 118(f) is prefaced by the words “unless otherwise specified” and where, as here, there are five successive extensions, each for a period of six months, the second and fourth of which are approved in writing by the accommodation maker, I believe the parties have substituted a period of time other than specified in the original note and in that circumstance a single additional extension by the bank is within the ambit of § 118(f). The majority finds this case “very similar” to McIlroy Bank & Trust v. Maestri, 297 Ark. 130, 759 S.W.2d 808 (1988). But I believe Maestri has material differences which render it distinguishable: In Maestri, the bank made not one but two unilateral extensions and, second, they were made after Maestri objected to further extensions and called on the bank to collect from the borrower. I would affirm the order appealed from. Turner, J., joins in dissent.