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MATTER OF MORRIS PAINT AND VARNISH CO.

No. 84-2884.

773 F.2d 130 (1985)

In the Matter of MORRIS PAINT AND VARNISH COMPANY, Debtor-Appellant.

United States Court of Appeals, Seventh Circuit.

Decided September 5, 1985.

Attorney(s) appearing for the Case

Russell V. Sutton, Sutton & Gunn, Chicago, Ill., for appellant.

Ronald L. Pallmann, McRoberts, Sheppard, Wimmer & Pallmann, East St. Louis, Ill., for appellee.

Before WOOD and CUDAHY, Circuit Judges, and WRIGHT, Senior Circuit Judge.

I.

CUDAHY, Circuit Judge.

In November 1979, appellant Morris Paint & Varnish Company ("Morris") borrowed $285,000 from appellee, MidAmerica Bank & Trust Company of Edgemont ("the Bank"). This ten-year loan was guaranteed by the Small Business Administration, and was also secured by a mortgage on Morris' business property. The mortgage agreement required Morris to obtain a fire insurance policy on the property, with a company and in an amount satisfactory...

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