1st Circuit Dismisses Borrowers' Appeal Against FDIC

BOSTON - The First Circuit U.S. Court of Appeals on July 3 affirmed a district court's ruling in favor of the Federal Deposit Insurance Corp., which, acting as the receiver for a failed bank, sued to collect on a defaulted loan, finding that the borrowers' argument fails because enforcement against the FDIC of unwritten promises or agreements is barred by 12 U.S. Code Section 1823(e)(1) (Federal Deposit Insurance Corp. v. Digno Emerito Estrada-Rivera, et al., Nos. 11-2113, 11-2433, 1st Cir.; 2013 U.S. App. LEXIS 13603).

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