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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 110439
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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My question deals with successor lender liability. The bank

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My question deals with successor lender liability. The bank failed, the FDIC was named receiver, and the loan was sold to a new corporation of which the FDIC (as corporate) is the majority owner. I filed suit against the bank prior to its failure for breach of contract. My documents satisfy the D'oench Duhme Doctrine. The lawsuit was active when the new corporation purchased the loan. Now, the new corporation claims no responsibility, knowledge, or documents as it relates to the loan except the promissory note and guarantees. Can you point me in a good direction to find helpful successor lender case law? Thanks in advance.
The new corporation can claim no knowledge of the prior bank's actions because they are a new corporation, even though your suit was filed before the failure. I actually did spend some time researching case law for this for an actual client of mine (which incidentally costs attorneys about $160 per hour for the database services for the research which you can do for free at your court's law library), not just in MO and the federal courts, but in all of the other state courts and not one case came up stating anything that imposes knowledge or intentional responsibility on a successor in interest bank for something like this. The contracts you have with the first bank may be found invalid and this could impact your promissory note and guaranties and may even invalidate them, but the successor bank would have no personal liability other than having to release the invalid notes (which is the extreme) or negotiating new valid notes with you (which is the norm ordered by the court).

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