Federal Deposit Ins. Corp. v. Reliance Ins. Corp.

MEMORANDUM

SILER, Chief Judge.

This matter comes before the Court upon defendant’s motion for summary judgment, and motion for partial summary judgment. Plaintiff FDIC seeks recovery under a bank’s blanket bond policy for losses sustained from a fraudulent loan scheme perpetrated by the bank’s president (“Ru-ley”) and a loan officer (“Knipp”). Loans were made to Chris Crowe Co. and Grayson Pallet Co., related entities which operated (and were to eventually purchase) a sawmill owned by the People’s Bank (“Bank”). Chris Crowe Co. was owned by Chris Ra-ney, and Grayson Pallet Co. was owned by…