Federal Deposit Insurance v. Newton

OPINION

LEWIS, Judge.

This is an appeal by the plaintiff, Federal Deposit Insurance Corporation (FDIC), as receiver for the American Bank of St. Joseph, Tennessee (Bank), from the trial court’s holding that it was not entitled to collect on promissory notes signed by defendants, Samuel P. Newton and Patrick L. White.

For the reasons hereafter set forth, we reverse.

The pertinent facts as stipulated to by the parties are as follows:

1.In late September or early October of 1983, Samuel P. Newton and Patrick L. White were each asked by Roger Pet-tus to sign a blank promissory note made payable to the…