Wells Fargo Can Protect Stake in Auto Loan, Bankruptcy Panel Says, Backing Assignment

A federal appeals court, ruling on a question of Ohio law, Dec. 5 held a bank unit of Wells Fargo can protect its stake in an auto loan, overturning a bankruptcy court that said the vehicle’s title failed to note the bank’s interest (In re: Megan Lynn Rice).

Wells Fargo Bank sought relief from a stay in a bankruptcy proceeding to protect its security interest in a loan taken on assignment from the original lender, Wells Fargo Auto Finance Inc.

The bankruptcy court denied the bank’s motion for relief. The court said the vehicle’s title failed to show ...