Smania v. Mundaca Investment Corp.

FERGUSON, Judge.

Mary Ann Smania, owner of a time-share condominium interest, appeals a final summary judgment in favor of Mundaea, holder of a note taken from the FDIC, which was executed by Ms. Smania for the purchase of the time-share unit. Two issues are presented:

1. Whether the D’Oench, Duhme doctrine and Title 12 U.S.C. section 1823(e) prevent Smania from asserting personal defenses against Mundaea based upon the note evidencing Smania’s agreement to pay; and

2. Whether Mundaea takes from the FDIC as a holder in due course under federal common law and is thus protected from the defenses…