United States v. Michael John Garan, and George Frederick Rombach
Opinion
Opinion
Gibson, J.
George Rombach appeals the district court’s entry of summary judgement in favor of the government in its suit to enforce Rom-bach’s guaranty of a Small Business Administration loan. We vacate the judgment and remand for further proceedings.
I. BACKGROUND
On February 23, 1977, Orangematic, Inc. executed a note in the amount of $388,000 and received loan proceeds in that amount from Union Bank. This loan was made under the Small Business Administration (SBA) Guaranteed Loan Program. Orangematic deposited the proceeds in its account at Union Bank. Simultaneously with the execution of the note, Rombach, one of the company’s officers and directors, signed a guaranty on the note, purportedly on a bank official’s representation that it would be revocable should Rombach resign as an officer and director of Orangematic. On May 27, 1977, some three months later, Rombach resigned as an officer and a director. Approximately three months after resigning, Rombach sent Union Bank a letter in which he referenced the bank official’s oral representation, declared that he was no longer an officer or a director, and “revoked” his guaranty.