Federal Deposit Insurance v. Kasal

There are two issues in this case: (1) whether the FDIC is bound by an unrecorded agreement between Dennis Albertson, the president of the Citizens State Bank of Gibbon, Minnesota, and Francis Kasai that the bank would look to Francis Kasai for payment of promissory notes signed by Bruce Kasai, Stanley Kasai, John D. Schilling, Roger Schaufler, George Ruzicka, and Grant G. Knutson;1 and (2) whether Francis Kasai should be entitled to prove the true balance on the notes.

I agree with the majority that the FDIC is not bound by the secret agreement between Albertson, Francis Kasai, and borrowers…