In re WL Homes, LLC

WL Homes, LLC (WL Homes) took out a 2007 credit loan from Wachovia Bank (Wachovia) secured in part by the bank account of its wholly owned subsidiary, JLH Insurance Corporation (JLH), also held at Wachovia. Of the seven authorized signers on the JLH account's depository certificate, five were exclusively WL Homes officers, and two — including Wayne Stelmar, who served as both JLH's president and WL Homes's CFO — held roles at both companies; Stelmar personally signed 2008 letters reaffirming WL Homes's obligations under the loan agreement. When WL Homes filed for bankruptcy in 2009, Wachovia sought a declaration that its security interest in the JLH account was perfected and enforceable; both Wachovia and the bankruptcy trustee moved for summary judgment.