First Interstate Bank of Billings, N.A. v. United States

OPINION AND ORDER

TURNER, Judge.

First Interstate Bank of Billings, N.A., brought this action to collect on a Farmers Home Administration (FmHA) Loan Note Guarantee issued to insure 90 percent of a $400,000 loan made by the bank to the DeJaegher Ranch Corporation.1 The FmHA had refused payment on the guaranty, claiming that a material misrepresentation by a bank officer at the signing of the guaranty contract caused it to be void. Defendant maintains that same defense here and also asserts four counterclaims, one contending that plaintiff’s request for payment under an invalid guaranty is…