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FEDERAL DEPOSIT INS. CORP. v. McCLANAHAN

No. 85-1603.

795 F.2d 512 (1986)

FEDERAL DEPOSIT INSURANCE CORP., Plaintiff-Appellant, v. Henry E. McCLANAHAN, Defendant-Appellee.

United States Court of Appeals, Fifth Circuit.

July 30, 1986.

Attorney(s) appearing for the Case

Scott Morse, Sharp & Morse, Robert I. Howell, Austin, Tex., for plaintiff-appellant.

Jeralynn (Jackee) Cox, Hannah & Guthrie, Judith K. Guthrie, John Hannah, Tyler, Tex., for defendant-appellee.

Before GEE, HIGGINBOTHAM, Circuit Judges, and HARVEY, District Judge.

PATRICK E. HIGGINBOTHAM, Circuit Judge:

Hoping to get a bank loan, the defendant recklessly signed a blank promissory note and delivered it to a man he knew had been convicted of bank fraud. When the bank failed, it was discovered that the note had been filled in to reflect a loan that the defendant never received. We hold that under the rule of D'Oench, Duhme & Co. v. FDIC, 315 U.S. 447, 62 S.Ct. 676, 86 L.Ed. 956 (1942...

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