City of Arlington, Texas, a Municipal Corporation v. Federal Deposit Insurance Corporation, Etc., First Gibraltar Bank, Fsb

POLITZ, Chief Judge:

First Gibraltar Bank, NSB, appeals a summary judgment ordering it to establish and fund an account in the amount of $2,100,000 plus interest in favor of the City of Arlington, Texas. Gibraltar also appeals the denial of its motion for summary judgment. For the reasons stated herein we reverse the summary judgment against Gibraltar and render summary judgment in its favor.

Background

In 1985 First Texas Savings Association, a state chartered savings and loan association, entered into a loan agreement with Shady Valley West Joint Venture, 1 agreeing to loan the venture up to…