American General Fire & Casualty Company v. Mizell Reese and Barbara Reese v. U.S. Department of Agriculture

JERRE S. WILLIAMS, Circuit Judge:

Appellants, Mr. and Mrs. Reese, appeal the district court’s order releasing insurance proceeds for their home, which was destroyed by fire in 1986, to the Farmers Home Administration (FmHA). The terms of the mortgages which the Reeses gave FmHA on their home as security for crop production loans required them to insure the home for the benefit of FmHA. But the American General Fire and Casualty Co. insurance policy in effect at the time of the fire did not name FmHA as a loss mortgagee or loss payee. The district court held that under Louisiana law, FmHA held…