I. David Porras, A/K/A David C. Porras, and William H. Edmiston, Intervening v. Petroplex Savings Association, Olney Savings Association

REAVLEY, Circuit Judge:

We affirm the judgment for Olney Savings Association on the ground that the D’Oench, Duhme doctrine, which protects the Federal Savings and Loan Insurance Corporation (FSLIC) from unwritten side agreements that tend to diminish the value of a facially valid instrument, continues that protection to a subsequent purchaser from the FSLIC of the assets of a failed institution.

I

In 1983 and 1984, appellant I. David Por-ras executed promissory notes to Petroplex Savings Association (“Petroplex”). The notes were secured by Deeds of Trust executed by Porras. Porras defaulted on…