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UNITED STATES v. CRAIN

No. 76-1574.

589 F.2d 996 (1979)

UNITED STATES of America, Plaintiff-Appellee, v. H. E. CRAIN and Ethel E. Crain, husband and wife, and Coconino County, Arizona, Defendants-Appellants.

United States Court of Appeals, Ninth Circuit.

January 17, 1979.

Attorney(s) appearing for the Case

Moeller Henry & LaVelle (argued), Phoenix, Ariz., for defendants-appellants.

John F. Flynn, Asst. U. S. Atty. (argued), Phoenix, Ariz., for plaintiff-appellee.

Before CHOY and SNEED, Circuit Judges, and KELLEHER, District Judge.

CHOY, Circuit Judge:

Harold and Ethel Crain appeal from the district court's summary judgment finding them liable on their personal guarantee of a Small Business Administration (SBA) loan and foreclosing the mortgage securing that guarantee. We affirm in part, and reverse and remand in part.

I

On January 12, 1968, the SBA loaned $100,000 to the Haining Lumber Company, Inc. Haining provided collateral for the loan. In addition, the loan was personally...

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