Horizon Mutual Savings Bank v. Federal Savings & Loan Insurance

REINHARDT, Circuit Judge:

Horizon Mutual Savings Bank appeals from an order granting summary judgment in favor of defendant, the Federal Savings & Loan Insurance Corporation (FSLIC). Horizon terminated its insurance with FSLIC on November 9, 1979, but FSLIC did not return Horizon’s reserve account funds until January 10, 1980. Interpreting its own regulations, FSLIC concluded that Horizon was not entitled to “a return” on this money. The district court limited its review to determining whether or not FSLIC’s decision had a rational basis, and found that FSLIC’s interpretation was not…