Federal Deposit Insurance Corp. v. Panelfab Puerto Rico Inc‪.‬

On March 31, 1978, the Secretary of the Treasury of the Commonwealth of Puerto Rico determined that the Banco Credito y Ahorro Ponceno (the Bank) was insolvent, ordered the Bank closed, and appointed the Federal Deposit Insurance Corporation (FDIC) as the Banks receiver. Pursuant to 12 U.S.C. § 1823(c), the FDIC purchased certain assets of the Bank, including a promissory note executed in 1977 by Panelfab Puerto Rico, Inc. (Panelfab) in the amount of $200,000. The district court found that the Bank issued the note in order to evidence a line of credit in that same amount and that "the line of credit after 1968 was extended from $200,000.00 to $400,000.00 and later to $700,000.00, and money was borrowed and paid accordingly." Appendix at 46a-47a. The Bank made periodic advances to Panelfab against this line of credit, and on the date of the Banks closing Panelfab owed the Bank $127,179 plus interest. It is uncontested that Panelfab still owes this amount, now to the FDIC.