September 2009 Archives

Oral Promise Does Not Extend Note's Maturity Date

September 16, 2009

Plaintiff bank sued to collect on a note. Defendant claimed that a bank official orally extended the maturity date on its loan for an additional year so that defendant was not in default. Without denying the oral promise and the fact that negotiations had been undertaken, plaintiff claimed that the loan documents did not allow oral modifications. The court agreed with plaintiff and refused to consider the alleged oral extension of the note's deadline. The court also decided that plaintiff did not waive the note's maturity date, regardless of the alleged oral promises.