First State Bank of Forsyth v. Chunkapura

The Chunkapuras (defendants) executed a $17,000 promissory note to First State Bank of Forsyth (plaintiff), secured by a deed of trust naming the Bank as beneficiary, and defaulted after paying only about $2,000. The Bank pursued judicial foreclosure, sale of the secured property, and a deficiency judgment for any shortfall; the Bank itself bought the property at the sheriff's sale for $10,000 as the only bidder. The trial judge ruled that Montana's Small Tract Financing Act barred a deficiency judgment; the Bank appealed, arguing it should be entitled to a deficiency judgment precisely because it chose judicial foreclosure rather than the trustee-sale process the Act was designed around.