Facts:. This Case Involves A Foreclosure Action Brought

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This case involves a foreclosure action brought against the mortgagor, Tanya R. Bass (Bass), by the mortgagee’s successor, U.S. Bank, who was transferred the rights of the promissory note. The note was originally established in October 2005 between Tanya Bass and Mortgage Lenders Network USA for $139,988 with monthly installments of $810.75. Bass would be in default of the note if she failed to make timely payments of the full amount.

The promissory note was transferred three times after originally being established. The first transfer offered when the note was negotiated from Mortgage Lenders to Emax Financial Group, LLC through a stamp evidencing the purpose of transferring the note. The second transferred the rights of the note
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Bank was not the holder and could not seek to foreclose. When brought to the trial court, the court found U.S. Bank to not be the rightful holder of the promissory note because a stamp is not sufficient to negotiate an instrument and therefore U.S. Bank did not have the authority to enforce any claims against the note. The foreclosure action was dismissed by the court due to U.S. Bank’s lack of ownership. The Court of Appeals confirmed the trial court’s decision on the case regarding the note’s invalid indorsement when U.S. Bank appealed.

After the appeal, there was a review of the case and a decision to reverse the ruling. Under review of the UCC’s definition of a signature – “any symbol executed or adopted with present intention to adopt or accept a writing.” A signature is not limited to an individual’s name according to the UCC, but can be any form of a mark indicating the intent of acceptance. Since the stamp clearly evidenced the intent of transferring possession of the note from one party to another, it was found to have been properly indorsed to Emax, who was then the rightful owner of the note and could negotiate it to another party.

Bass attempted to base her claim from a case
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