East Bank of Colorado Springs

On February 26, 1974, respondent, Dovenmuehle, Inc., issued a loan commitment letter to Ronald Silverman and Ronald Mesec for the financing of the construction of a 56-unit condominium project in Colorado Springs. The loan commitment provided that Dovenmuehle would loan $2,000,000 to Silverman and Mesec on condition that they procure an irrevocable letter of credit in the amount of $130,000, naming Dovenmuehle as beneficiary. Paragraph 19 of Dovenmuehles loan commitment provided that the securing of the letter of credit was "a condition to first disbursement of loan proceeds" and was "to provide for the total anticipated cash needs" of the project in excess of the amount of the $2,000,000 loan.