Question

Business law:

Cynthia Dudley was a student at Southern Virginia University (SVU). Dudley obtained a loan from Nellie Mae, which included a note by which Dudley agreed to repay the money loaned to the order of Nellie Mae. SVU sued Dudley to collect on the note, but failed to produce the note in court, claiming that it had been lost or destroyed. Dudley responded that if SVU could not produce the note, it could not prove negotiation from Nellie Mae to SVU, and SVU could not collect. Could SVU simply claim the note had been lost or destroyed?

Answer 1

The case of a promissory note being sold from Nellie Mae to South Virginia University (SVU). The details of the case are as follows:

• Cynthia Dudley obtained a loan from Nellie Mae
• Cynthia Dudley signed a note where she agreed to pay back Nellie Mae
• Nellie Mae Sold the note to SVU
• SVU claiming payment for the note from Cynthia Dudley
• SVU does not have the note as it claims it was lost/ destroyed.

SVU can claim the loan amount by producing an affidavit of lost promissory note. This is a signed notarized document that states the physical note is lost /destroyed. This is assuming that the lender can prove that the money was given as a loan to Cynthia. The document should mention the date and terms of the note, interest rate, the amount claimed, proper legal names of the lender and borrower. It should also include evidence like a photocopy of the original note.