Cuna Mutual Insurance Society v. Dominguez

MOLLOY, Chief Judge.

This case arises out of an agreement by a credit union to lend money to one of its members and his wife. A portion of the loan had been disbursed when the member-borrower was killed in an accident. We must determine whether the credit union should be required to disburse the remainder of the loan proceeds, and whether life insurance proceeds are available for its repayment.

There is no significant dispute about the facts. In early November, 1965, John Dominguez and Ruth Dominguez wished to purchase a house and lot in Superior, from Mr. and Mrs. Eugene Jaime, for a purchase…