Gray v. Federal Deposit Insurance Corp.

OPINION ON MOTION FOR REHEARING

OLIVER-PARROTT, Chief Justice.

This case is an appeal from a judgment on a guaranty of a promissory note. We reverse and render a take-nothing judgment. We deny appellee’s motion for rehearing, withdraw our previous opinion, and substitute the following opinion.

Prior to his death on December 26, 1986, Elmer J. Gray executed a guaranty agreement in October 1985 with First Mexia Bank (First Mexia or the Bank) by which he guaranteed the first $150,000 of any then-existing or future debt owed to First Mexia by “Jesse Jones d/b/a Quality Pipe and Steel.”

Thereafter, in…