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MITCHELL v. SHEPHERD MALL STATE BANK

No. 71-1342.

458 F.2d 700 (1973)

In the Matter of Richard Dudley MITCHELL and Ruby Della Donelson, d/b/a Marby's Style Shop, a Partnership, Bankrupts-Appellees, v. SHEPHERD MALL STATE BANK and Small Business Administration, Respondents-Appellant.

United States Court of Appeals, Tenth Circuit.

April 14, 1972.

Attorney(s) appearing for the Case

Michael Kimmel, Atty., Dept. of Justice, Washington, D. C. (L. Patrick Gray, III, Asst. Atty. Gen., William R. Burkett, U. S. Atty., and Walter H. Fleischer, Atty., Dept. of Justice, Washington, D. C., with him on the brief), for appellant, Small Business Administration.

Norman E. Reynolds, Oklahoma City, Okl. (Paul F. Fernald, Oklahoma City, Okl., with him on the brief), for appellees, Trustee in Bankruptcy.

Before MURRAH, SETH and BARRETT, Circuit Judges.

MURRAH, Circuit Judge.

In April of 1968, the Shepherd Mall State Bank (Bank), located in Oklahoma City, made a $25,000 loan to James Edwards and Ruby Donelson, partners doing business as Marby's Fashions, a ladies' clothing concern with retail shops in two suburbs of Oklahoma City. The loan was guaranteed to the extent of 75% by the Small Business Administration (SBA) pursuant to the Small Business Act (15 U.S.C. § 636(a)) and its implementing regulations (13...

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