Slide-A-Ride of Las Cruces, Inc. v. Citizens Bank

OPINION

WALTERS, Justice.

On January 21, 1981, the Small Business Administration authorized a $150,000 loan to plaintiff Slide-A-Ride of Las Cruces, Inc. (Slide) for the purchase of land and construction expenses. Defendant Citizens Bank of Las Cruces, Inc. (Citizens) an approved lender with the SBA, agreed to make an interim loan to Slide to be followed by a permanent loan guaranteed by the SBA. While construction on the ride was in progress, Citizens advanced $66,250 directly to Slide’s contractor. Slide alleges this was done without its approval, without a joint payee check, and without a…