Federal Deposit Insurance Corporation v. Manuel De Jesus Velez, Luis Dominguez v. Federal Deposit Insurance Corporation

FLOYD R. GIBSON, Senior Circuit Judge.

Appellants contest district court findings 1 that they are liable to the Federal Deposit Insurance Corporation (FDIC) for certain promissory notes. They had executed notes payable to the now insolvent Banco de Ahorro and had served as directors of that bank. They argue that the courts below erred in finding that agreements collateral to the notes did not relieve them of liability on the notes.

I. Facts

Appellants Manuel de Jesus Velez and Luis Dominguez each purchased twenty-five debentures issued by the Banco de Ahorro (the Bank) with a face value of…