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Business Associations Keyed to Hamilton
In the Matter of Drive-In Development Corp
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- Facts: What are the factual circumstances that gave rise to the civil or criminal case? What is the relationship of the Parties that are involved in the case. Review the Facts of this case here:
The parent company of Drive-in (D), Tastee Freez Industries, Inc. (D) wanted to borrow money the National Boulevard Bank of Chicago (the “Bank”) (P). The Bank (P) agreed on the condition that Drive-in (D) guarantee the loan. Maranz, as chairman of Drive-in (D) was willing to execute a guaranty, but the Bank (P) also requested a copy of resolution which would authorize Maranz to sign on behalf of Drive-in (D). The resolution never appeared in Drive-in’s (D) books leading to doubt whether the Drive-in (D) board ever adopted it. Drive-in (D) eventually filed for bankruptcy, and the Bank (P) made a clam for the amount of its unpaid loan. The referee dismissed the claim, alleging that Maranz lacked binding authority to make the agreement. From judgment confirming the referee’s decision, the Bank (P) appealed.
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