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CITY OF LINCOLN v. HERSHBERGER

No. S-05-1066.

725 N.W.2d 787 (2007)

272 Neb. 839

CITY OF LINCOLN, Nebraska, a municipal corporation, appellant, v. James E. HERSHBERGER and Sandra M. Hershberger, appellees.

Supreme Court of Nebraska.

January 5, 2007.

Attorney(s) appearing for the Case

Dana W. Roper, Lincoln City Attorney, and James D. Faimon, Lincoln, for appellant.

Joel D. Nelson, of Keating, O'Gara, Nedved & Peter, P.C., L.L.O., Lincoln, for appellee.

HEAVICAN, C.J., WRIGHT, CONNOLLY, GERRARD, STEPHAN, McCORMACK, and MILLER-LERMAN, JJ.

GERRARD, J.

The City of Lincoln (the City) loaned money to PMI Franchising, Inc. (PMI), pursuant to a project financing agreement. James E. Hershberger and Sandra M. Hershberger were guarantors on the loan. PMI failed to repay any of the installment payments, and the City, in a letter dated February 28, 1995, exercised its right to accelerate the debt under the agreement. The City filed suit against the Hershbergers on September 20, 1999. The district court granted...

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