Bank of Yuma v. Arrow Construction Co.

LOCKWOOD, Justice:

This case is before us on a petition to review a decision of the Court of Appeals, 12 Ariz.App. 466, 472 P.2d 77, reversing a superior court judgment in favor of the defendant, Arrow Construction Company. The decision of the Court of Appeals is vacated.

The facts appear as follows: Bemar Development Company decided to build a building in Yuma, Arizona to be known as “Crescent Center.” To obtain funds for the project, it borrowed $750,000 from Investors Diversified Services, Inc. To make sure that the money loaned went into the building, and that the building, when completed,…