Federal Deposit Insurance Corporation v. Zook Brothers Construction Company, a Corporation Glenn T. Zook Donald R. Zook Louise M. Zook Eunice E. Zook
Court of Appeals for the Ninth Circuit
1Opinion of the Court
RYMER, Circuit Judge:
The FDIC brought suit against Louise Zook on a guaranty executed in support of a loan to Zook Brothers Construction Company by Continental Illinois National Bank and Trust Company of Chicago, which had assigned agreements relating to ZBCC to the FDIC. The district court decided after a bench trial that the Bank’s failure to obtain Zook’s consent to alterations in the credit arrangement released her from the guaranty, rendering it unenforceable under Illinois law. The FDIC argues that enforceability is a matter of federal law, and that the district court should have…
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