Defendant, David L. Juve (the “Debtor,” and together with Mona L. Juve, the “Debtors”), appeals from the bankruptcy court’s grant of summary judgment to plaintiff, David A. Heide (the “Creditor”), holding a debt in the amount of $400,000, nondischargeable pursuant to Bankruptcy Code Section 523(a)(2)(A).
The undisputed facts, viewed in the light most favorable to the debtor, do not support a determination that the creditor’s financing arrangement was with the debtor; at the time of the loans, debtor’s representations concerning the value of his inventory were not false, and he could not, therefore, have obtained the loans by fraud; debtor did not have an ongoing duty under 523(a)(2)(A) to advise the creditor that the value of the inventory was decreasing and any failure to do so was not fraudulent conduct.
Reversed and remanded.