Phillip McCallum as Administrator of Small Business Administration and United States of America v. Mrs. Burma S. Griffin

TUTTLE, Chief Judge.

In 1957, the Luxury Carpet Mills, Inc., in which appellee owns some 40 percent of the stock, obtained a loan from the Small Business Administration under the provisions of 15 U.S.C.A. § 631 et seq. As a condition of the loan, the Administration required, inter alia, that the three stockholders, Mrs. Griffin, her husband, and another relative, execute “guaranties” on SBA Form 148 and that Mrs. Griffin’s “be secured by first mortgage of land, including improvements of the properties” owned solely by her. Accordingly, the three stockholders executed the forms, separate…