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AMERICAN FIRE & CAS. CO. v. FIRST NAT. BANK OF NEW YORK

No. 7086.

411 F.2d 755 (1969)

AMERICAN FIRE & CASUALTY CO., Appellant, v. FIRST NATIONAL CITY BANK OF NEW YORK et al., Appellees.

United States Court of Appeals First Circuit.

July 1, 1969.

Attorney(s) appearing for the Case

F. Castro Amy, San Juan, P. R., with whom A. Castro Fernandez, San Juan, P. R., was on the brief, for appellant.

Wallace Gonzalez-Oliver, San Juan, P. R., with whom Gonzalez, Jr., Gonzalez-Oliver & Novak, San Juan, P. R., was on the brief, for First National City Bank of New York appellee.

Before ALDRICH, Chief Judge, McENTEE and COFFIN, Circuit Judges.

McENTEE, Circuit Judge.

This case stems from a dispute between a surety (American Fire & Casualty Co.) and a lender (First National City Bank of New York, hereafter the Bank). The surety was engaged by a subcontractor (Manubenco Enterprises Corp.) to guarantee completion of its work to the general contractor, American P. R. Investment Corp., hereafter APRICO.

The facts, based on a stipulation entered into between surety and lender, are as follows: On November...

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