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FIRST NAT. BANK, HENRIETTA v. SMALL BUSINESS ADMIN.

No. 27873.

429 F.2d 280 (1970)

FIRST NATIONAL BANK, HENRIETTA, Plaintiff-Appellee, v. SMALL BUSINESS ADMINISTRATION, Defendant-Appellant.

United States Court of Appeals, Fifth Circuit.

July 17, 1970.

Attorney(s) appearing for the Case

William D. Ruckelshaus, Asst. Atty. Gen., Eldon B. Mahon, U. S. Atty., Dallas, Tex., Stephen R. Felson, Civil Div., Appellate Section, Robert V. Zener, Dept. of Justice, Washington, D. C., for defendant-appellant.

Frank Gibson, Lee Humphrey, Humphrey, Gibson & Darden, Wichita Falls, Tex., for plaintiff-appellee.

Before THORNBERRY, DYER and CLARK, Circuit Judges.

CLARK, Circuit Judge:

The Small Business Administration (SBA) appeals from a jury verdict enforcing a loan guaranty agreement in favor of the First National Bank of Henrietta, Texas (Bank). Because we decide that the Bank had a duty to the SBA, under the relationship that existed between these parties, to exercise due care in confirming the accuracy of the financial information which the borrower furnished, and that the proof raised a jury question of whether the...

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