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FEDERAL DEPOSIT INS. CORP. v. ALLEN

No. 85-5822.

801 F.2d 863 (1986)

FEDERAL DEPOSIT INSURANCE CORPORATION, Plaintiff-Appellant, v. James M. ALLEN, et al., Defendants-Appellees.

United States Court of Appeals, Sixth Circuit.

Decided September 25, 1986.

Attorney(s) appearing for the Case

Alan L. Spear (argued), Sally C. Bradley, Knoxville, Tenn., Michael L. Powell, for plaintiff-appellant.

Gary L. Goldstein, Johnson City, Tenn., for defendants-appellees.

Before MERRITT and GUY, Circuit Judges, and BALLANTINE, District Judge.

BALLANTINE, District Judge.

Defendants-appellees, hereafter defendants, are eight partners in a Tennessee partnership known as Ripshin Mountain Enterprises. In order to finance its operation1, the partnership established a $40,000 line of credit with City and County Bank of Washington County, later known as First Peoples Bank of Washington County (the Bank).

The two managing partners of Ripshin executed a promissory note in the...

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