Stewart Title Guaranty Co. v. Federal Deposit Insurance Corp.

OPINION

SUSANO, Judge.

This litigation finds its genesis in the aftermath of a failed banking institution. In 1984, Cherokee Valley Federal Savings Bank (Bank) loaned appellees Alfonso and Gwendolyn Charles (Charles) $45,750 to finance the purchase of property on Signal Mountain, Tennessee. The Charles executed and delivered to the Bank a 90-day note for $45,750 and a deed of trust on the purchased property, which was municipally known as 1302 Spencer Road.

Approximately a year later the Charles sold the property to John and Christina Harr, who, as a part of the transaction, sought a title…