Federated Bank v. Federal Deposit Insurance

Federated Bank (“Federated”) appeals from the district court’s final judgment in this action that arises out of a loan participation agreement (the “Agreement”) it had entered into with Silverton Bank, N.A. (“Silverton”), under which Silverton had sold to Federated a roughly one-third interest in a $3 million — plus loan for the purchase price of $1 million. When the loan matured and the entire principal amount became due, the underlying borrower J. Michael Womble (“Womble”) defaulted. Five months later, Silverton failed and the FDIC was appointed as its receiver. After unsuccessful efforts…