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ROCK ISLAND BANK v. AETNA CAS. & SUR. CO.

No. 81-2205.

692 F.2d 1100 (1982)

The ROCK ISLAND BANK, Plaintiff, v. The AETNA CASUALTY AND SURETY COMPANY, Defendant, Third-Party Plaintiff-Appellant, v. William J. KEARNEY, Third-Party Defendant-Appellee.

United States Court of Appeals, Seventh Circuit.

Decided November 9, 1982.

Rehearing Denied December 15, 1982.

Attorney(s) appearing for the Case

Jeffrey R. Tone, Sidley & Austin, Chicago, Ill., for defendant, third-party plaintiff-appellant.

Gary L. Griffin, McNeela & Griffin, Ltd., Chicago, Ill., for third-party defendant-appellee.

Before SPRECHER and BAUER, Circuit Judges, and FAIRCHILD, Senior Circuit Judge.

FAIRCHILD, Senior Circuit Judge.

This is a diversity case. The parties agree that Illinois law governs the critical issues.

The Facts

Between January 19, 1968 and March 4, 1970, William J. Kearney was president of the Rock Island Bank (Rock Island). During his tenure, Kearney made and renewed certain loans and issued certain letters of credit allegedly in excess of his authority. Among the letters of credit was one issued June 5, 1969, by...

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