Bank of New York Mellon v. Delaney

The “holder” of a blank indorsement for a “promissory note secured by a trust deed” possesses the “right to enforce the note.” ORS 73.0301 (UCC §3-301); Nationstar Mortgage, LCC v. Peper, 278 Or App 594, 596, 377 P3d 678 (2016).

Defendants appealed from a judgment for the judicial foreclosure of a residential deed of trust which Defendants executed to secure a promissory note for a loan. Defendants assigned error to the trial court’s ruling that Plaintiff was entitled to enforce the note. On appeal, Defendants argued Plaintiff could not enforce the note because (1) the listed lender did not exist as a corporation, (2) the indorsement was not in the listed lender’s name, (3) neither listed corporation had a valid Oregon lending license when the loan was made, and (4) Plaintiff did not prove the indorsement was authentic. In response, Plaintiffs argued they were entitled, as holders of the note, to enforce it against Defendants. The “holder” of a blank indorsement for a “promissory note secured by a trust deed” possesses the “right to enforce the note.” ORS 73.0301 (UCC §3-301); Nationstar Mortgage, LCC v. Peper, 278 Or App 594, 596, 377 P3d 678 (2016). The Court rejected all of Defendants’ arguments on the grounds they were only challenging Plaintiff’s ability to enforce the note, rather than the principle of law behind the right of enforcement. The Court held that, because Plaintiff was the holder of the promissory note, given to them in a blank indorsement, Plaintiff had the legal right to enforce it. Affirmed.