Farmers State Savings Bank v. Farmers Home Administration, a Division of the United States Department of Agriculture

WOLLMAN, Circuit Judge.

Farmers State Savings Bank (Farmers State) appeals from the district court’s 1 order dismissing Farmers State’s amended complaint. We affirm.

The Farmers Home Administration (FmHA) conditionally approved Mr. and Mrs. Wayne Hilliards’ application for a farm ownership loan in March of 1983. Farmers State subsequently agreed to loan the Hilliards $80,000, understanding that FmHA had committed itself to making a loan to the Hilliards with which they could repay Farmers State. FmHA, however, did not make the loan. In February 1984, the Hilliards entered into chapter 11…