Goldyn

Facts

In November 1987, Joni Goldyn opened checking and savings accounts

with the Nevada Federal Credit Union (NFCU). Generous to a fault, NFCU also

showered Goldyn with a $1,000 loan, a $500 line of credit attached to her

checking account, a credit card and a check guarantee card. The back of the latter

card read as follows:

This credit union guarantees payment of cardholder’s checks drawn prior to the expiration date by the person whose name appears on the face of this card subject to the following conditions: 1) Check amount shall not exceed $100 cash or $500 for merchandise; 2) Card number and expiration date must appear on the check . . . .

The inscription on the back of the card also imposed certain obligations on the

cardholder, triggered “[b]y signing and using the card”:

3) Pay the credit union for checks guaranteed with this card if the cardholder’s account is insufficient; 4) To surrender this card upon the credit union’s request.

The expiration date on the front of the card was November 1989.

By January 1988, Goldyn had depleted the funds in her accounts, used up

most of her $500 line of credit and accumulated various bank fees, resulting in a

net negative…