Federal Deposit Insurance Corp. v. Projects American Corp.

OPINION

CORNELIUS, Chief Justice.

The Federal Deposit Insurance Corporation (FDIC) appeals from a declaratory judgment granting Projects American Corporation (PAC), and others, an offset of a note against an uninsured deposit. We reverse and render judgment.

In November 1983, Western Bank-Westheimer lent PAC the funds to set up a qualifying defined benefit pension plan for PAC’s officers and employees. The note was secured by certain corporate assets of PAC and was personally guaranteed by Charles and Jim Rawson. The Rawsons were the owners and officers of PAC and were also co-trustees and…