First Interstate Bank of Billings v. United States
Court of Appeals for the First Circuit
1Opinion of the Court
BRYSON, Circuit Judge.
This ease requires us to construe the “incontestability clause” that accompanies government loan guarantees under certain federal programs. The incontestability clause at issue in this case provides that the government’s loan guarantee is incontestable “except for fraud or misrepresentation” of which the lender “has actual knowledge” or which the lender “participates in or condones.” The Court of Federal Claims interpreted that language to require the government to prove that the lender acted with “intent to deceive” before the loan guarantee can be voided. The…
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