Continental Bank v. Guaranty Warehouse Corp.

OPINION

FERNANDEZ, Judge.

Continental Bank appeals from the entry of summary judgment in favor of Guaranty Warehouse Corporation in Continental’s suit for the loss of the collateral which secured a loan it had made to a third party. The bank contends that issues of fact exist which precluded entry of summary judgment. We agree and reverse.

In May 1983 Continental extended an $850,000 line of credit to Phoenix Distributing Company, Inc., a wholesale distributor of beer, wine, soft drinks and distilled liquor. The maturity date of the loan was November 11, 1983. The bank initially refused the loan…