Argonaut Savings & Loan Association, Etc. v. Federal Deposit Insurance Corp.

This is an action by the assignees of a lessor of real property against the Federal Deposit Insurance Corporation (FDIC) as receiver of the lessee, San Francisco National Bank. The District Court entered a summary judgment for the FDIC. We affirm.

The lease was made on July 12, 1963, and calls for rent at $3,000 per month, plus taxes and insurance. On January 22, 1965, the Comptroller of the Currency ordered the Bank closed as insolvent and appointed FDIC receiver. On June 28, 1965, FDIC gave written notice of disaffirmance of the lease, effective July 31, 1965. It paid the rent for the months of February through July, 1965. On December 14, 1965, the present action was filed.

A copy of the lease is attached to the complaint. It provides that, upon the appointment of a receiver for the lessee Bank, the lessor has the following options :

(a) To sue for and collect each installment of rent or other money as it becomes due, or

(b) To re-enter, oust the tenant and relet for the latter’s account, the tenant to continue liable, month by month, for deficiencies in rent, or

(c) To terminate the lease, in which event the tenant is to become liable for the difference between the then…