A premium finance company says a state court has permitted it to foreclose on 2 borrowers.
Mutual Credit Corp., Irvine, Calif., says a Orange County, Calif., Superior Court judge has entered judgments in foreclosure actions involving Donald Kueltzo and Harry Jenkins.
The defendants originally had argued that Mutual Credit had created non-recourse premium finance arrangements designed to force borrowers to transfer policies to Mutual Credit or sell the policies after 2 years.
Both borrowers have issued statements indicating that they are satisfied with the way in which Mutual Credit has conducted its affairs, the company says.
Kueltzo and Jenkins could not immediately be reached for comment.
In a news release issued by Mutual Credit, Kueltzo says Mutual Credit’s “non-recourse premium financing is a valuable estate planning tool that provided me with the ability to obtain a significant amount of life insurance.”
Mutual Credit “financing allowed me to obtain a substantial amount of life insurance without having to divert funds from other investments toward premiums to purchase such insurance,” Jenkins says in another statement accompanying the Mutual Credit release. “I understand the value of those benefits and believe that the terms of [Mutual Credit's] loans were both fair and reasonable.”