NCNB Texas National Bank v. Johnson

REYNALDO G. GARZA, Circuit Judge:

These cases involve a bank’s suit to collect from the guarantor of a defaulting borrower. The district court granted summary judgment against the defendant guarantor. Defendant appeals.

I

FACTS

On June 28,1985, Quest Development, Inc. (“Quest”) borrowed $1,828,000 from the National Bank of Fort Sam Houston (“Sam Houston Bank”). Quest’s three shareholders were Frank Corte, Ben Johnson, and Fred Anderson. The bank obtained a security interest, evidenced by a deed of trust, in certain undeveloped land. Corte and Johnson signed a guaranty for this Quest loan.…