KMAP, INC. v. Town & Country Broadcasters, Inc.

Plaintiff brought this action in the court below to recover on a promissory note executed by Town & Country Broadcasters, Inc., hereinafter referred to as defendant. Plaintiff appeals from a judgment entered on the court’s order dismissing the action. Because we have concluded that the trial court’s order of dismissal was in error, we reverse the judgment.

On March 30, 1966, defendant borrowed $18,121.37 from Bank of America to pay for certain radio equipment it had purchased from the plaintiff for the operation of a FM radio station. This loan was guaranteed by plaintiff and was evidenced by a promissory note payable in three installments; in consideration for the guarantee, defendant executed a security agreement effecting a security interest in favor of plaintiff in the radio equipment.

Defendant defaulted on all three installments, and on September 22, 1966, Bank of America made a demand on plaintiff for full payment of the principal and interest; plaintiff paid the bank the sum of $19,960.76 and was assigned the promissory note which defendant executed. Then plaintiff attempted to acquire possession of the collateral pursuant to the provisions of the security…