Oklahoma National Bank v. Reconstruction Finance Corp.

CHANDLER, District Judge.

This ease arises under the Reconstruction Finance Corporation Act, 47 Stat. 5, as amended, 15 U.S.C.A. § 601 et seq.

The issue is whether interpretation of the Blanket Participation Agreement entered into between the Oklahoma National Bank, hereinafter called the bank, and the Reconstruction Finance Corporation, hereinafter called the RFC, requires knowledge on the part of a bank that any part of the funds loaned by it pursuant to the agreement is used, directly or indirectly, to repay prior indebtedness to the bank.

The Blanket Participation Agreement authorized the…