USA Fertilizer, Inc. v. Idaho First National Bank

WALTERS, Chief Judge.

USA Fertilizer, Inc. brought an action seeking to hold Idaho First National Bank (Idaho First) secondarily liable on the unpaid account of a bankrupt farmer. On appeal from the judgment entered in favor of Idaho First, we are asked to determine whether the district court erroneously interpreted a letter of guarantee. For the reasons explained below, we affirm.

FACTS

Early in 1987, Sterling J. Smith, a farmer in Shelley, Idaho, applied for an operating loan with Idaho First. Smith subsequently approached USA Fertilizer to obtain fertilizer for his farm. However, when USA…