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UNITED STATES v. BURGREEN

No. 76-2731.

591 F.2d 291 (1979)

UNITED STATES of America, Plaintiff-Appellee, v. Wharton K. BURGREEN et al., Defendants Third-Party Plaintiffs-Appellants, v. FIRST ALABAMA BANK OF HUNTSVILLE, N. A., a banking corporation formerly known as the First National Bank of Huntsville, Third-Party Defendant-Appellee.

United States Court of Appeals, Fifth Circuit.

Rehearing Denied April 11, 1979.

Attorney(s) appearing for the Case

Edgar E. Smith, Currun C. Humphrey, Huntsville, Ala., for Wharton K. Burgreen.

J. R. Brooks, U. S. Atty., Charles A. Perry, Caryl P. Privett, Asst. U. S. Attys., Birmingham, Ala., for the U. S.

Frank K. Noojin, Huntsville, Ala., for First Ala. Bank of Huntsville.

Before INGRAHAM, GEE and TJOFLAT, Circuit Judges.

TJOFLAT, Circuit Judge:

The Small Business Administration (SBA), after proceeding against the collateral securing a $200,000 loan, brought this suit1 for deficiency against the six guarantors of the loan: Wharton K. and Julia S. Burgreen, the appellants; Parks L. and Barbara J. Heaton; and Billy R. and Jane E. Harris. The Burgreens resisted liability, asserting that their guaranty was void for two reasons: it was unsupported by consideration...

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