Court Opinion

ID: 9706783
Source: CourtListenerOpinion
Date Created: 2023-08-26 01:51:25.49991+00
Date Added: 2024-06-11T18:22:24.940026
License: Public Domain

PEDERSON, Surrogate Judge,
dissenting.
It is one of society’s basic rules that anything borrowed ought to be returned. I understand what may have motivated the legislation to provide some additional protection for naive borrowers who may be manipulated by the beguiling tactics of some “evil” lender.
In Bank of Kirkwood Plaza v. Mueller, 294 N.W.2d 640, 643 (N.D.1980), we justifiably said that “[w]e will not extend the scope of the anti-deficiency statutes beyond that which is clear from the statute.” Mandan Security Bank v. Heinsohn, (N.D.1982), honored that principle.
Perhaps some of the rhetoric in Hein-sohn does justify a tuneup or an overhaul, but by overruling it we could start the commercial credit system down an uncontrolled “slippery slope.” Surely, future lenders will need to back off from extending credit based upon a conservative appraisal of pledged assets supplemented by someone’s integrity. Most lenders are merely bankers or caretakers of money that is owned by depositors or investors and they are governed by the rule of the prudent person.
Even real estate can turn out to be a worthless hole in the ground as in Borsheirn v. Owan, 467 N.W.2d 95 (N.D.1991).