Legal Opinion
Federal Deposit Insurance Corporation v. State Bank of Virden
Court of Appeals for the Seventh Circuit
Decided March 5, 1990No. 89-1334PublishedCited by 45 opinions
1Opinion of the Court
EASTERBROOK, Circuit Judge.
Banks may not lend to any customer more than a small portion of their net equity. Lending limits reduce the risk a given loan poses to solvency. Small banks often have limits that prevent their making loans adequate to the needs of their principal customers. One solution is the “loan participation": a bank makes an over-limit loan, then syndicates the debt, selling parts so that no bank’s share exceeds the amount it may loan to one customer. For years the State Bank of Farmersville and the State Bank of Virden, two banks in rural Illinois, accommodated each other in…
2Cases cited23 opinions
- D'Oench, Duhme & Co. v. Federal Deposit InsuranceSupreme Court of the United States · 1942
- United States v. Kimbell Foods, Inc.Supreme Court of the United States · 1979
- Langley v. Federal Deposit InsuranceSupreme Court of the United States · 1987
- Scott v. ArmstrongSupreme Court of the United States · 1892
- Studley v. Boylston National BankSupreme Court of the United States · 1913
18 more not listed; retrieve them via the Exa API.
3Cited by45 opinions
- Resolution Trust Corp. v. Dunmar Corp.Court of Appeals for the Eleventh Circuit · 1995
- Federal Deposit Insurance Corporation, as Receiver of Union National Bank of Chicago v. Lillian Wright, Also Known as Lillian Wright LawlerCourt of Appeals for the Seventh Circuit · 1991
- Castleglen, Inc. v. Resolution Trust Corp.Court of Appeals for the Tenth Circuit · 1993
- Federal Deposit Insurance Corporation v. Gilbert BiermanCourt of Appeals for the Seventh Circuit · 1993
- First Heights Bank, FSB v. Gutierrez, Texas Court of Appeals, 13th District1993
40 more not listed; retrieve them via the Exa API.