Colonial Courts Apartment Co. v. Paradis

MEMORANDUM AND ORDER

LAGUEUX, District Judge.

I. INTRODUCTION

This case grows out of Rhode Island’s current banking crisis. Plaintiffs allegedly hold an unsecured claim of $1.3 million against the receivership estate of Marquette Credit Union (“Marquette”), based on certain standby letters of credit issued in 1990. The Governor of Rhode Island closed Marquette on January 1, 1991, because Marquette’s deposit insurer had become insolvent and Marquette lacked federal insurance. Defendant Paradis was appointed as Marquette’s receiver several months later because it was insolvent. The order…