Savers Federal Savings & Loan Ass'n v. First Federal Savings & Loan Ass'n

Darrell Hickman, Justice.

First Federal Savings and Loan of Harrison (First Federal) entered into a loan participation contract with Savers Federal Savings and Loan (Savers). The question on appeal is whether the circuit court was correct in declaring that First Federal effected a “legal rescission” of the contract and was entitled to full restitution of its funds expended, less its return on investment. We find there was no rescission at law and remand the case for further proceedings.

In 1983, Savers was the lead lender on a $3.31 million construction loan made to Woodlake Manor, a retirement…