1

!"#$"%&$'()*&+,(-.+$(/.%(0122$++$+(
(
3'""4("4(0122$++(4*567*&5(8.&9+(":$'(76$(;$.'+(4'"#(76$(4'"&7(<*&$+("4(
!"#$"%&$'+(.&=(>77"'&$;+(

aLLon v. ulemer, 33 Chlo SL. 3d 68, 318 n.L.2d 941, 1988). A [udamenL rendered bv a courL
lacklna sub[ecL maLLer [urlsdlcLlon ls vold ab lnlLlo. ConsequenLlv, Lhe auLhorlLv Lo vacaLe a vold
[udamenL ls noL derlved from Chlo 8. Clv. . 60(8), buL raLher consLlLuLes an lnherenL power
possessed bv Chlo courLs. l see no evldence Lo Lhe conLrarv LhaL Lhls would applv Lo ALL courLs.

"A parLv lacks sLandlna Lo lnvoke Lhe [urlsdlcLlon of a courL unless he has, ln an lndlvldual or a
represenLaLlve capaclLv, some real lnLeresL ln Lhe sub[ecL maLLer of Lhe acLlon. Lebanon
CorrecLlonal lnsLlLuLlon v. CourL of Common leas 33 Chlo SL.2d 176 (1973).

"A parLv lacks sLandlna Lo lnvoke Lhe [urlsdlcLlon of a courL unless he has, ln an lndlvldual or a
represenLaLlve capaclLv, some real lnLeresL ln Lhe sub[ecL maLLer of an acLlon." Wells larao
8ank, v. 8vrd, 178 Chlo App.3d 283, 2008-0hlo-4603, 897 n.L.2d 722 (2008). lL wenL on Lo hold,
"lf plalnLlff has offered no evldence LhaL lL owned Lhe noLe and morLaaae when Lhe complalnL
was flled, lL would noL be enLlLled Lo [udamenL as a maLLer of law."

(1he followlna courL case was unpubllshed and hldden from Lhe publlc) Wells larao, LlLLon Loan
v. larmer, 867 n.?.S.2d 21 (2008). "Wells larao does noL own Lhe morLaaae loan ... 1herefore,
Lhe ... maLLer ls dlsmlssed wlLh pre[udlce."

(1he followlna courL case was unpubllshed and hldden from Lhe publlc) Wells larao v. 8eves,
867 n.?.S.2d 21 (2008). ulsmlssed wlLh pre[udlce, lraud on CourL & SancLlons. Wells larao
never owned Lhe MorLaaae.

[1he followlna courL case was unpubllshed and hldden from Lhe publlc) ueuLsche 8ank v.
eabodv, 866 n.?.S.2d 91 [2008). LqulllrsL, when maklna Lhe loan, vlolaLed 8eaulaLlon Z of Lhe
lederal 1ruLh ln Lendlna AcL 13 uSC 1601 and Lhe lalr uebL CollecLlons racLlces AcL 13 uSC
1692, "lnLenLlonallv creaLed fraud ln Lhe facLum" and wlLhheld from plalnLlff... "vlLal
lnformaLlon concernlna sald debL and all of Lhe maLrlx lnvolved ln maklna Lhe loan."

(1he followlna courL case was unpubllshed and hldden from Lhe publlc) lndvmac 8ank v. 8ovd,
880 n.?.S.2d 224 [2009). 1o esLabllsh a prlma facle case ln an acLlon Lo foreclose a morLaaae,
Lhe plalnLlff musL esLabllsh Lhe exlsLence of Lhe morLaaae and Lhe morLaaae noLe. lL ls Lhe law's
2

pollcv Lo allow onlv an aaarleved person Lo brlna a lawsulL ... A wanL of "sLandlna Lo sue," ln
oLher words, ls [usL anoLher wav of savlna LhaL Lhls parLlcular plalnLlff ls noL lnvolved ln a
aenulne conLroversv, and a slmple svlloalsm Lakes us from Lhere Lo a "[urlsdlcLlonal" dlsmlssal:

[1he followlna courL case was unpubllshed and hldden from Lhe publlc} lndvmac 8ank v.
8eLhlev, 880 n.?.S.2d 873 (2009). 1he CourL ls concerned LhaL Lhere mav be fraud on Lhe parL of
plalnLlff or aL leasL malfeasance lalnLlff lnu?MAC [ueuLsche) and musL have "sLandlna" Lo
brlna Lhls acLlon.


(1he followlna courL case was unpubllshed and hldden from Lhe publlc) ueuLsche 8ank naLlonal
1rusL Co v.1orres, n? Sllp Cp 31471u (2009). 1haL "Lhe dead cannoL be sued" ls a well
esLabllshed prlnclple of Lhe [urlsprudence of Lhls sLaLe plalnLlff's second cause of acLlon for
declaraLorv rellef ls denled. 1o be enLlLled Lo a defaulL [udamenL, Lhe movanL musL esLabllsh,
amona oLher Lhlnas, Lhe exlsLence of facLs whlch alve rlse Lo vlable clalms aaalnsL Lhe defaulLlna
defendanLs.

"1he docLrlne of ulLra vlres ls a mosL powerful weapon Lo keep prlvaLe corporaLlons wlLhln Lhelr
lealLlmaLe spheres and punlsh Lhem for vlolaLlons of Lhelr corporaLe charLers, and lL probablv ls
noL lnvoked Loo ofLen ... " Zlnc CarbonaLe Co. v. llrsL naLlonal 8ank, 103 Wls. 123, 79 nW 229
(1899). Also see: Amerlcan Lxpress Co. v. ClLlzens SLaLe 8ank, 181 Wls. 172, 194 nW 427 (1923).

(1he followlna courL case was unpubllshed and hldden from Lhe publlc) Wells larao v. 8eves,
867 n.?.S.2d 21 (2008). Case dlsmlssed wlLh pre[udlce, fraud on Lhe CourL and SancLlons
because Wells larao never owned Lhe MorLaaae.


(1he followlna courL case was unpubllshed and hldden from Lhe publlc) Wells larao, LlLLon Loan
v. larmer, 867 n.?.S.2d 21 (2008). Wells larao does noL own Lhe morLaaae loan. "lndeed, no
more Lhan (affldavlLs) ls necessarv Lo make Lhe prlma facle case." unlLed SLaLes v. kls, 638 l.2d,
326 (7Lh Clr. 1981).

[1he followlna courL case was unpubllshed and hldden from Lhe publlc) lndvmac 8ank v.
8eLhlev, 880 n.?.S.2d 873 (2009). 1he CourL ls concerned LhaL Lhere mav be fraud on Lhe parL of
plalnLlff or aL leasL malfeasance lalnLlff lnu?MAC (ueuLsche) and musL have "sLandlna" Lo
brlna Lhls acLlon.


3

Lawver responslble for false debL collecLlon clalm lalr uebL CollecLlon racLlces AcL, 13 uSCS
1692-1692o,PelnLz v. !enklns, 314 u.S. 291, 113 S. CL. 1489, 131 L. Ld. 2d 393 (1993). and
luCA 1lLle 13 u.S.C. sub secLlon 1692. ln deLermlnlna wheLher Lhe plalnLlffs come before Lhls
CourL wlLh clean hands, Lhe prlmarv facLor Lo be consldered ls wheLher Lhe plalnLlffs souahL Lo
mlslead or decelve Lhe oLher parLv, noL wheLher LhaL parLv relled upon plalnLlffs'
mlsrepresenLaLlons. SLachnlk v. Wlnkel, 394 Mlch. 373, 387, 230 n.W.2d 329, 334 (1973).

"lndeed, no more Lhan (affldavlLs) ls necessarv Lo make Lhe prlma facle case." unlLed SLaLes v.
kls, 638 l.2d, 326 (7Lh Clr. 1981). CerL uenled, 30 u.S. L.W. 2169, S. CL. March 22, (1982).

"Sllence can onlv be equaLed wlLh fraud where Lhere ls a leaal or moral duLv Lo speak or when
an lnqulrv lefL unanswered would be lnLenLlonallv mlsleadlna." u.S. v. 1weel, 330 l.2d 297
(1977).

"lf anv parL of Lhe conslderaLlon for a promlse be llleaal, or lf Lhere are several conslderaLlons
for an un-severable promlse one of whlch ls llleaal, Lhe promlse, wheLher wrlLLen or oral, ls
whollv vold, as lL ls lmposslble Lo sav whaL parL or whlch one of Lhe conslderaLlons lnduced Lhe
promlse." Menomlnee 8lver Co. v. AuausLus Sples L & C Co., 147 Wls. 339 aL p. 372, 132 nW
1118 (1912).


lederal 8ule of Clvll rocedure 17(a)(l) whlch requlres LhaL "[a]n acLlon musL be prosecuLed ln
Lhe name of Lhe real parLv ln lnLeresL." See also, ln re !acobson, 402 8.8. 339, 363-66 (8ankr.
W.u. Wash. 2009), ln re Pwana, 396 8.8. 737, 766-67 (8ankr. C. u. Cal. 2008).

MorLaaae LlecLronlc 8ealsLraLlon SvsLems, lnc. v. Chona, 824 n.?.S.2d 764 (2006). ML8S dld noL
have sLandlna as a real parLv ln lnLeresL under Lhe 8ules Lo flle Lhe moLlon ... 1he declaraLlon
also falled Lo asserL LhaL ML8S, lMC CaplLal LLC or Pomecomlnas llnanclal, LLC held Lhe noLe.

Landmark naLlonal 8ank v. kesler, 289 kan. 328, 216 .3d 138 (2009). "kan. SLaL. Ann. 60-
260(b) allows rellef from a [udamenL based on mlsLake, lnadverLence, surprlse, or excusable
nealecL, newlv dlscovered evldence LhaL could noL have been Llmelv dlscovered wlLh due
dlllaence, fraud or mlsrepresenLaLlon, a vold [udamenL, a [udamenL LhaL has been saLlsfled,
released, dlscharaed, or ls no lonaer equlLable, or anv oLher reason [usLlfvlna rellef from Lhe
operaLlon of Lhe [udamenL. 1he relaLlonshlp LhaL Lhe realsLrv had Lo Lhe bank was more akln Lo
LhaL of a sLraw man Lhan Lo a parLv possesslna all Lhe rlahLs alven a buver." Also ln SepLember
of 2008, A Callfornla !udae rullna aaalnsL ML8S concluded, "1here ls no evldence before Lhe
courL as Lo who ls Lhe presenL owner of Lhe noLe. 1he holder of Lhe noLe musL [oln ln Lhe
moLlon."
4


LaSalle 8ank v. Ahearn, 873 n.?.S.2d 393 (2009). ulsmlssed wlLh pre[udlce. Lack of sLandlna.

novasLar MorLaaae, lnc v. Snvder 3:07Cv480 (2008). lalnLlff has Lhe burden of esLabllshlna lLs
sLandlna. lL has falled Lo do so.

uu CaplLal, lnc. v. arsons, CASL nC. 07-MA-17 (2008). A aenulne lssue of maLerlal facL exlsLed
as Lo wheLher or noL appellee was Lhe real parLv ln lnLeresL as Lhere was no evldence on Lhe
record of an asslanmenL. 8eversed for lack of sLandlna.

Lverhome MorLaaae Companv v. 8owland, no. 07A-613 (Chlo 2008). MorLaaaee was noL Lhe
real parLv ln lnLeresL pursuanL Lo 8ule 17(a). Lack of sLandlna.

ln LamberL v. llrsLar 8ank, 83 Ark. App. 239, 127 S.W. 3d 323 (2003), complvlna wlLh Lhe
SLaLuLorv loreclosure AcL does noL lnsulaLe a flnanclal lnsLlLuLlon from llablllLv and does noL
prevenL a parLv from Llmelv asserLlna anv clalms or defenses lL mav have concernlna a
morLaaae foreclosure A.C.A. 18-30-116(d)[2) and vlolaLes honesL servlces 1lLle 18 lraud.
noLlce Lo credlL reporLlna aaencles of overdue pavmenLs/foreclosure on a fraudulenL debL ls
defamaLlon of characLer and a whole separaLe fraud. A CourL of Appeals does noL conslder
asserLlons of error LhaL are unsupporLed bv convlnclna leaal auLhorlLv or araumenL, unless lL ls
apparenL wlLhouL furLher research LhaL Lhe araumenL ls well Laken. l8Auu ls a polnL well Laken!
LamberL Supra.

no lawful conslderaLlon Lendered bv Crlalnal Lender and/or SubsequenL MorLaaae and/or
Servlclna Companv Lo supporL Lhe alleaed debL. "A lawful conslderaLlon musL exlsL and be
Lendered Lo supporL Lhe noLe" and demand under 1lLA full dlsclosure of anv such
conslderaLlon. Anheuser-8usch 8rewlna Companv v. Lmma Mason, 44 Mlnn. 318,46 n.W. 338
(1890).


naLlonal 8anks and/or subsldlarv MorLaaae companles cannoL reLaln Lhe noLe, "Amona Lhe
asseLs of Lhe sLaLe bank were Lwo noLes, secured bv morLaaae, whlch could noL be Lransferred
Lo Lhe new bank as asseLs under Lhe naLlonal 8anklna Laws. naLlonal 8ank AcL, SecL 28 & 36"
naLlonal 8ank of Commerce v. ALklnson, 8 kan. App. 30, 34 . 8 (1898).


"A bank can lend lLs monev, buL noL lLs credlL." llrsL naL'l 8ank of 1allapoosa v. Monroe, 133 Ca
614, 69 S.L. 1123 (1911).
3



lL ls noL necessarv for resclsslon of a conLracL LhaL Lhe parLv maklna Lhe mlsrepresenLaLlon
should have known LhaL lL was false, buL recoverv ls allowed even Lhouah mlsrepresenLaLlon ls
lnnocenLlv made, because lL would be un[usL Lo allow one who made false represenLaLlons,
even lnnocenLlv, Lo reLaln Lhe frulLs of a baraaln lnduced bv such represenLaLlons." Whlpp v.
lverson, 43 Wls. 2d 166, 168 n.W.2d 201 (1969).

"A bank ls noL Lhe holder ln due course upon merelv credlLlna Lhe deposlLors accounL." 8ankers
1rusL v. naaler, 23 A.u.2d 643, 237 n.?.S.2d 298 (1963).

"Anv conducL capable of belna Lurned lnLo a sLaLemenL of facL ls represenLaLlon. 1here ls nno
dlsLlncLlon beLween mlsrepresenLaLlons effecLed bv words and mlsrepresenLaLlons effecLed bv
oLher acLs." [1he seller or lender) "Pe ls llable, noL upon anv ldea of beneflL Lo hlmself, buL
because of hls wronaful acL and Lhe consequenL ln[urv Lo Lhe oLher parLv." Leonard v. Sprlnaer,
197111 332. 64 nL 299 (1902).


"lf anv parL of Lhe conslderaLlon for a promlse be llleaal, or lf Lhere are several conslderaLlons
for an un-severable promlse one of whlch ls llleaal, Lhe promlse, wheLher wrlLLen or oral, ls
whollv vold, as lL ls lmposslble Lo sav whaL parL or whlch one of Lhe conslderaLlons lnduced Lhe
promlse." Menomlnee 8lver Co. v. AuausLus Sples L & C Co.,147 Wls. 339 aL p. 372, 132 nW
1118 (1912).

"1he conLracL ls vold lf lL ls onlv ln parL connecLed wlLh Lhe llleaal LransacLlon and Lhe promlse
slnale or enLlre." Cuardlan Aaencv v. Cuardlan MuL. Savlnas 8ank, 227 Wls. 330, 279 nW 79
(1938).


Moore v. Mld-enn Consumer ulscounL Co., Clvll AcLlon no. 90-6432 u.S. ulsL. LLxlS 10324 (a.
1991). 1he courL held LhaL, under 1lLA's 8eaulaLlon Z, 12 Cl8 226.4 [a), a lender had Lo
expresslv noLlfv a borrower LhaL he had a cholce of lnsurer.


Marshall v. SecurlLv SLaLe 8ank of PamllLon, 121 8.8. 814 (lll. 1990) vlolaLlon of lederal 1ruLh ln
Lendlna 13 uSCS 1638(a)[9L and 8eaulaLlon Z. 1he bank Look a securlLv lnLeresL ln Lhe vehlcle
wlLhouL dlscloslna Lhe securlLv lnLeresL.

6

SLelnbrecher v. Mld-enn Consumer ulscounL Co., 110 8.8. 133 (a. 1990). Mld-enn vlolaLed
1lLA bv noL lncludlna ln a flnance charae Lhe debLors' purchase of flre lnsurance on Lhelr home.
1he purchase of such lnsurance was a condlLlon lmposed bv Lhe companv. 1he cosL of Lhe
lnsurance was added Lo Lhe amounL flnanced and noL Lo Lhe flnance charae.


nlchols v. Mld-enn Consumer ulscounL Co., 1989 WL 46682 (a. 1989). Mld-enn mlslnformed
nlchols ln Lhe noLlce of 8lahL Lo Cancel MorLaaae.

McLlvanv v. Pousehold llnance 8ealLv Corp., 98 8.8. 237 (a. 1989). debLor flled an appllcaLlon
Lo remove Lhe morLaaae foreclosure proceedlnas Lo Lhe unlLed SLaLes ulsLrlcL CourL pursuanL Lo
28 uSCS 1409. lL ls sLrlcL llablllLv ln Lhe sense LhaL absoluLe compllance ls requlred and even
Lechnlcal vlolaLlons wlll form Lhe basls for llablllLv. LauleLLa v. vallev 8ulck lnc., 421 l. Supp.
1036 aL 1040 (a. 1976).


!ohnson-Allen v. Lomas and neLLleLon Co., 67 8.8. 968 (a. 1986). vlolaLlon of 1ruLh-ln Lendlna
AcL requlremenLs, 13 uSCS 1638(a)(10), requlred morLaaaee Lo provlde a sLaLemenL
conLalnlna a descrlpLlon of anv securlLv lnLeresL held or Lo be reLalned or acqulred. lallure Lo
dlsclose.


CervanLes v. Ceneral LlecLrlc MorLaaae Co., 67 8.8. 816 (a. 1986). credlLor falled Lo meeL
dlsclosure requlremenLs under Lhe 1ruLh ln Lendlna AcL, 13 u.S.C.S. 1601-1667c and
8eaulaLlon Z of Lhe lederal 8eserve 8oard, 12 Cl8 226.1 McCausland v. CMAC MorLaaae Co.,
63 8.8. 663, (a. 1986}. CMAC falled Lo provlde lnformaLlon whlch musL be dlsclosed as deflned
ln Lhe 1lLA and 8eaulaLlon Z, 12 Cl8 226.1


errv v. lederal naLlonal MorLaaae Corp., 39 8.8. 947 (a. 1986} Lhe dlsclosure sLaLemenL was
deflclenL under Lhe 1ruLh ln Lendlna AcL, 13 u.S.C.S. 1638(a)(9}. uefendanL MorLaaae Co.
falled Lo reveal clearlv whaL securlLv lnLeresL was reLalned.


SchulLz v. CenLral MorLaaae Co., 38 8.8. 943 (a. 1986}. 1he courL deLermlned credlLor
morLaaaor vlolaLed Lhe 1ruLh ln Lendlna AcL, 13 u.S.C.S. 1638(a)(3}, bv lLs fallure Lo lnclude
Lhe cosL of morLaaae lnsurance ln calculaLlna Lhe flnance charae. 1he courL found credlLor falled
7

Lo meeL anv of Lhe condlLlons for excludlna such cosLs and was llable for Lwlce Lhe amounL of
Lhe Lrue flnance charae.

Solls v. lldellLv Consumer ulscounL Co., 38 8.8. 983 (a. 1986). Anv mlsalvlnas credlLors mav
have abouL Lhe Lechnlcal naLure of Lhe requlremenLs should be addressed Lo Conaress or Lhe
lederal 8eserve 8oard, noL Lhe courLs. ulsclosure requlremenLs for credlL sales are aoverned bv
13 u.S.C.S. 1638 12 Cl8 226.8(bL (c). ulsclosure requlremenLs for consumer loans are
aoverned bv 13 u.S.C.S. 1639 12 Cl8 226.8(b), (d). A vlolaLor of Lhe dlsclosure requlremenLs
ls held Lo a sLandard of sLrlcL llablllLv. 1herefore, a plalnLlff need noL show LhaL Lhe credlLor ln
facL decelved hlm bv maklna subsLandard dlsclosures. Slnce 1ransworld SvsLems lnc. have noL
cancelled Lhe securlLv lnLeresL and reLurn all monles pald bv Ms. Sherrle l. Lalorce wlLhln Lhe 20
davs of recelpL of Lhe leLLer of resclsslon of CcLober 7, 2009, Lhe lenders named above are
responslble for acLual and sLaLuLorv damaaes pursuanL Lo 13 u.S.C. 1640(a).

orLer v. Mld-enn Consumer ulscounL Co., 961 l.2d 1066 (3rd Clr. 1992). orLer flled an
adversarv proceedlna aaalnsL appellanL under 13 u.S.C. 1633, for fallure Lo honor her requesL
Lo resclnd a loan secured bv a morLaaae on her home.

8owland v. Maana Mllllkln 8ank of uecaLur, n.A., 812 l.Supp. 873 (1992) Lven Lechnlcal
vlolaLlons wlll form Lhe basls for llablllLv. 1he morLaaaors had a rlahL Lo resclnd Lhe conLracL ln
accordance wlLh 13 u.S.C. 1633(c).

new Malne naL. 8ank v. Cendron, 780 l.Supp. 32 (1992}. 1he courL held LhaL defendanLs were
enLlLled Lo resclnd loan under sLrlcL llablllLv Lerms of 1lLA because plalnLlff vlolaLed 1lLA's
provlslons.
ulxon v. S & SLoan Servlce of Wavcross, lnc., 734 l.Supp. 1367 (1990), 1lLA ls a remedlal
sLaLuLe, and, hence, ls llberallv consLrued ln favor of borrowers. 1he remedlal ob[ecLlves of 1lLA
are achleved bv lmposlna a svsLem of sLrlcL llablllLv ln favor of consumers when mandaLed
dlsclosures have noL been made. 1hus, llablllLv wlll flow from even mlnuLe devlaLlons from Lhe
requlremenLs of Lhe sLaLuLe and Lhe reaulaLlons promulaaLed under lL.


Woolfolk v. van 8u CredlL Corp., 783 l.Supp. 724 (1990) 1here was no dlspuLe as Lo Lhe maLerlal
facLs LhaL esLabllshed LhaL Lhe debL collecLor vlolaLed Lhe luCA. 1he courL aranLed Lhe
debLors' moLlon for summarv [udamenL and held LhaL (1) under 13 u.S.C. 1692(e), a debL
collecLor could noL use anv false, decepLlve, or mlsleadlna represenLaLlon or means ln
connecLlon wlLh Lhe collecLlon of anv debL, unfalr uebL CollecLlon racLlces AcL.

8

!enklns v. Landmark MorLa. Corp. of vlralnla, 696 l.Supp. 1089 (W.u. va. 1988). lalnLlff was
also mlslnformed reaardlna Lhe effecLs of a resclsslon. 1he perLlnenL reaulaLlon sLaLes LhaL
"when a consumer resclnds a LransacLlon, Lhe securlLv lnLeresL alvlna rlse Lo Lhe rlahL of
resclsslon becomes vold and Lhe consumer shall noL be llable for anv amounL, lncludlna anv
flnance charae." 12 Cl8 226.23(d} (1).

Laubach v. lldellLv Consumer ulscounL Co., 686 l.Supp. 304 (L. u. a. 1988). MoneLarv damaaes
for Lhe plalnLlffs pursuanL Lo Lhe 8ackeLeer lnfluenced and CorrupL CraanlzaLlon AcL, 18 uSC
1961. (CounL l}, Lhe 1ruLh-ln-Lendlna AcL, 13 uSC 1601.

Searles v. Clarlon MorLa. Co., 1987 WL 61932 (L. u. a. 1987), LlablllLv wlll flow from even
mlnuLe devlaLlons from requlremenLs of Lhe sLaLuLe and 8eaulaLlon Z. fallure Lo accuraLelv
dlsclose Lhe properLv ln whlch a securlLv lnLeresL was Laken ln connecLlon wlLh a consumer
credlL LransacLlon lnvolvlna Lhe purchase of resldenLlal real esLaLe ln vlolaLlon of 13 uSCs
1638(a)(9). and 12 Cl8 226.18(m).

ulxon v. S & SLoan Servlce of Wavcross, lnc., 734 l.Supp. 1367, 1370 (S.u. Ca. 1990). Conaress's
purpose ln passlna Lhe 1ruLh ln Lendlna AcL (1lLA), 13 uSCs 1601(a). was Lo assure a
meanlnaful dlsclosure of credlL Lerms so LhaL Lhe consumer wlll be able Lo compare more
readllv Lhe varlous credlL Lerms avallable Lo hlm. 13 uses 1601(a). 1lLA ls a remedlal sLaLuLe,
and, hence, ls llberallv consLrued ln favor of borrowers.,

CervanLes v. Ceneral LlecLrlc MorLaaae Co., 67 8.8. 816 (L. u. a. 1986). 1he courL found LhaL
Lhe 1lLA vlolaLlons were aoverned bv a sLrlcL llablllLv sLandard, and defendanL's fallure Lo reveal
ln Lhe dlsclosure sLaLemenL Lhe exacL naLure of Lhe securlLv lnLeresL vlolaLed Lhe 1lLA.

errv v. lederal naLlonal MorLaaae, 39 8.8. 947 (L.u. a. 1986). uefendanL falled Lo accuraLelv
dlsclose Lhe securlLv lnLeresL Laken Lo secure Lhe loan. orLer v. Mld-enn Consumer ulscounL
Co., 961 l.2d 1066 (3rd Clr. 1992). Adversarv proceedlna aaalnsL appellanL under 13 u.S.C.
1633, for fallure Lo honor her requesL Lo resclnd a loan secured bv a morLaaae on her home.
She was enLlLled Lo Lhe equlLable rellef of resclsslon and Lhe sLaLuLorv remedles under 13 u.S.C.
1640 for appellanL's fallure Lo resclnd upon requesL.

Solls v. lldellLv Consumer ulscounL Co., 38 8.8. 983 (a. 1986). Anv mlsalvlnas credlLors mav
have abouL Lhe Lechnlcal naLure of Lhe requlremenLs should be addressed Lo Conaress or Lhe
lederal 8eserve 8oard, noL Lhe courLs. ulsclosure requlremenLs for credlL sales are aoverned bv
13 u.S.C.S. 1638 12 Cl8 226.8(b), (c). ulsclosure requlremenLs for consumer loans are
aoverned bv 13 u.S.C.S. 1639 12 Cl8 226.8(b), (d).

9

A vlolaLor of Lhe dlsclosure requlremenLs ls held Lo a sLandard of sLrlcL llablllLv. 1herefore, a
plalnLlff need noL show LhaL Lhe credlLor ln facL decelved hlm bv maklna subsLandard
dlsclosures. 8owland v. Maana Mllllkln 8ank of uecaLur, n.A., 812 l.Supp. 873 (1992).

Lven Lechnlcal vlolaLlons wlll form Lhe basls for llablllLv. 1he morLaaaors had a rlahL Lo resclnd
Lhe conLracL ln accordance wlLh 13 u.S.C. 163S(c). new Malne naL. 8ank v. Cendron, 780
l.Supp. 32 (u. Me. 1992). 1he courL held LhaL defendanLs were enLlLled Lo resclnd loan under
sLrlcL llablllLv Lerms of 1lLA because plalnLlff vlolaLed 1lLA's provlslons.